Which of the following answers correctly states the effect of recording the collection of the reinstated receivable on April 7,2013?
A) Option A
B) Option B
C) Option C
D) Option D

Question

Which of the following answers correctly states the effect of recording the collection of the reinstated receivable on April 7,2013? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

Option B correctly states that recording the collection of the reinstated receivable on April 7, 2013 would increase cash by $1,000 and decrease accounts receivable by $1,000. Option A is incorrect because it does not reflect the impact on accounts receivable. Option C is incorrect because it does not reflect the increase in cash. Option D is incorrect because it shows a decrease in cash, which is not accurate since the collection would result in an increase in cash.

Which of the Following Answers Correctly States the Effect of Recording