If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accountspayable, then: CIRCLE ONE:૧. both assets and shareholders' equity would decrease by $20,000b. both assets and liabilities would decrease by $20,000C. assets would increase by $20,000 while liabilities would decrease by $20,000d. liabilities would decrease by $20,000 while shareholders' equity would increase by $20,000

The correct answer is: (B) both assets and liabilities would decrease by $20,000.

Answered: If a company received $20,000 as a…

If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts payable, then: CIRCLE ONE:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Alco Roofing Company's beginning accounts receivable were $200,000 and ending accounts receivable…

A: Equation is opening receivables + credit sales - collections = ending receivables

Q: At the beginning of the period, FDN Trading had a cash balance of P22,000 and a notes payable of…

A: Solution Given Opening cash balance 22000 Opening notes payable 17000 Collection…

Q: Need help

A: We calculate Tamarisk's average net accounts receivable by using the formula:Accounts Receivable…

Q: Kitty Inc. shares the following information with you and ask you to determine their ending…

A: Ending balance of Accounts Receivables = Opening Balance + Sales - Collections

Q: If the company accounting records indicate the following for the bank: Opening amount $10,000…

A: As per company accounts:Opening amount $10,000Deposits 30,000Cheques-22,000Closing balance $18,000As…

Q: ABC Corporation began 2019 with an accounts receivable balance of $56,921. During 2019, ABC had…

A: The account receivables are also known with the name of debtors. These are the values due to a firm…

Q: The accounts receivable account for The Orlando Magic has a debit balance of $430,000 and the…

A: Net realizable value of accounts receivable = Debit balance of accounts receivable - Credit balance…

Q: Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and…

A: Required reserve ratio= Amount of reserves / deposit received=>Required reserve ratio= $200 /…

Q: The following information is available for Market, Incorporated and Supply, Incorporated at December…

A: Turnover :— It is calculated by dividing net sales revenue by average accounts receivable. Average…

Q: Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: A firm has $375,000 in credit sales and $135,000 in accounts receivable. Compute the average number…

A: Average number of collection days = 365 days / Average receivable turnover ratio Average receivable…

Q: What is the accounts payable total on $112,000 with 2/10 net 30

A: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within ten days. And if…

Q: A firm starts with $5,000 of accounts receivables and ends the period with $4,000 of receivables. If…

A: Sales revenue: It can be defined as the amount received by an individual or entity against the sale…

Q: Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?…

A: Formulas: Factoring expenses = Receivables * Fee rate

Q: For each transaction, indicate whether the receivables should be reported as accounts receivable,…

A: Note Reeivable: Note receivable is an instrument gives the holder right to receive the amount…

Q: Analysis of Accounts Receivable and Allowance for Doubtful Accounts (FSET) Steelcase, Inc., reported…

A: The allowance for uncollectible accounts is a contra-asset account that represents the estimated…

Q: Blue Air Inc., has net sales of $735,000 and accounts receivables of $164,000. What are the firm's…

A: Accounts Receivables Turnover Ratio measures the efficiency of the company in collecting receivables…

Q: Beginning accounts receivable were $135,600 and ending accounts receivable were $128,640. All sales…

A: Cash collected from customers = Beginning accounts receivable + Credit sales - Ending accounts…

Q: Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable…

A: Accounts receivable: It implies to the amount that has been owed by the customers to the business.…

Q: Sweet Company has the following account balances: Inventory Prepaid Insurance Cash 556,000 12,000…

A: An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of…

Q: The data below is for Betts Corporation for the year. Accounts receivable-December 31 Customer…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: The following information (in $ millions) was taken from recent annual reports of Nike and Under…

A: The calculation of Accounts Receivables turn over ratio of Nike and Under Armour is shown hereunder…

Q: A company reports the following: Sales Average accounts receivable (net) Determine (a) the accounts…

A: The account receivable turnover ratio indicates the efficiency of the entity in collecting accounts…

Q: Flying Tigers, Inc., has net sales of $762,000 and accounts receivables of $154,000. What is the…

A: The amount owing to a business by its customers or clients for products sold or services provided on…

Q: In the statement of financial position at 31 December 20X5, Ken reported net receivables of $12,000.…

A: The objective of the question is to calculate the net receivables figure to include in the statement…

Q: Use the following information about a company's receivable transactions to determine relevant…

A: Accounts ReceivableThis account records the company's credit sales, collections from customers, and…

Q: net interest income: $1,250 net noninterest income: $200 operating expenses: $900 loan…

A: Return on equity (ROE) With net income and equity, ROE is calculated as shown below. ROE=Net…

Q: J. Whitlock Co. had $1,000 of credit cards sales. The net cash receipts were deposited immediately…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: The balance in Accounts Receivable at the beginning of the year was $520,000. The balance in…

A: Credit sales is a term in which the goods is transferred to the customer on a credit basis. In which…

Question

If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts
payable, then: CIRCLE ONE:
૧. both assets and shareholders' equity would decrease by $20,000
b. both assets and liabilities would decrease by $20,000
C. assets would increase by $20,000 while liabilities would decrease by $20,000
d. liabilities would decrease by $20,000 while shareholders' equity would increase by $20,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please answer following question Q5: Company Name Net Credit Sales Beginning Net Receivables Ending Net Receivables Brown $180,000 $ 5,000 $30,000 Pink $400,000 $52,000 $42,000 Yellow $ 75,000 $ 5,400 $ 5,800 (a)Which company is doing the best job of managing its accounts receivable? Why? Be sure to support your answer with computations. (b)What are your concerns about these companies? BR,
The following information is available from the annual reports of Pharoah Company and Novak Corp. Companies. Sales Beginning receivables, net Ending receivables, net 1. 2. 1. (In millions) 2. Pharoah Company $128,000 Based on the preceding information, compute the following for each company: (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) 23,300 Accounts receivable turnover 16,300 Average collection period Novak Corp. $43,000 4,000 Accounts receivable turnover. (Assume all sales were credit sales.) Average collection period. 4,800 Pharoah Company times. days Novak Corp. times days.
Accounts Receivable Balance Beginning accounts receivable were $135,720 and ending accounts receivable were $128,640. All sales were on credit and totalled $1,682,480. Required: Determine how much cash was collected from customers.
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
A company reported the following information: Accounts receivable, December 31, 2023: $122,000 Accounts receivable, December 31, 2022: $113,000 Sales (all on credit) for 2023: $850,000 Accounts receivable, December 31, 2023 $122,000 Accounts receivable, December 31, 2022 113,000 Sales (all on credit) for 2023 850,000 How much cash was collected from customers during 2023?
Tanger Company has three customers: E, F, and G. The beginning accounts receivable subsidiary ledger of customers F and G have $2,600 and $1,500, respectively. The beginning Accounts Receivable balance in the general ledger is $12,000. Calculate the ending amount in the accounts receivable subsidiary ledger account of customer E, if customer E also made a $3,900 payment. OA. $4,000 OB. $3,900 OC. $1,500 OD. $2,600
A company had beginning accounts receivable of $175,000. All sales were on account and totaled $550,000. Cash collected from customers totaled $650,000. Calculate the ending accounts receivable balance.
The accounts receivable account has a debit balance of $214,000 and the allowance for uncollectible accounts has a credit balance of $8,000. What is the "net accounts receivable (net realizable value)" that will be shown on the balance sheet? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 f5 f7 f8 f6 [X f9 f10 f11 4. 6 7 8 9. Y U 5 图 %24