Question

During fiscal 2016, Plastics and Synthetic Resins Company recorded cash of $87,800 from customers for accounts receivable collections. Which of the following financial statement effects template entries captures this transaction?

Balance Sheet Income Statement Cash Assets + Noncash Assets=Liabilities +Contributed +Earned Revenues-Expenses=Net IncomeCapital Capital a. Balance Sheet Income StatementCash Assets + Noncash Assets = Liabilities + Contributed + Earned Revenues - Expenses =Net IncomeCapital Capital +87,800 +87,800 +87,800 - = +87,800b. Balance Sheet Income StatementCash Assets + Noncash Assets = Liabilities + Contributed + Earned Revenues - Expenses =Net IncomeCapital Capital +87,800 -87,800 (AR)c. Balance Sheet Income StatementCash Assets + Noncash Assets = Liabilities + Contributed + Earned Revenues - Expenses =Net IncomeCapital Capital +87,800 (AR) +87,800 +87,800 - = +87,800d. Balance Sheet Income StatementCash Assets + Noncash Assets = Liabilities + Contributed + Earned Revenues - Expenses =Net IncomeCapital Capital -87,800 +87,800 (AR)

Answer 1

Correct option is B

Step-by-step explanation:

When cash is received from accounts receivables, it only impacts on balance sheet that too, only on cash assets and non cash assets.

Cash will be increased and non cash asset accounts receivables will be decreased, everything else will remain constant.

Thus correct option is B

Where Cash Assets = + $87,800

Non Cash Assets = - $87,800