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Consider the following transactions by a corp On July 5, billed a customer for $6700 for services performed on that day. On August 10, called the client to remind them of the balance owing on their bill. What is the effect on the balance sheet on August 10?

Consider the following transactions by a corp On July 5, billed a customer for $6700 for services performed on that day. On August 10, called the client to remind them of the balance owing on their bill. What is the effect on the balance sheet on August 10?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the following transactions by a corporation: On July 5, billed a customer for $6700 for services performed on that day. On August 10, called the client to remind them of the balance owing on their bill. What is the effect on the balance sheet on August 10? Increase in accounts receivable of $6,700, increase in equity of $6,700 Increase in cash of $6,700, increase in retained earnings of $6,700 Increase in accounts receivable of $6,700, increase in unearned revenue of $6,700 No effect.
Transcribed Image Text:Consider the following transactions by a corporation: On July 5, billed a customer for $6700 for services performed on that day. On August 10, called the client to remind them of the balance owing on their bill. What is the effect on the balance sheet on August 10? Increase in accounts receivable of $6,700, increase in equity of $6,700 Increase in cash of $6,700, increase in retained earnings of $6,700 Increase in accounts receivable of $6,700, increase in unearned revenue of $6,700 No effect.
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