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Exercise 3-9a (Algorithm): Recording receivables and identifying their effect on financial statements. LO 3-1

User Pperrin
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Final answer:

Recording receivables involves documenting and recognizing amounts owed to a company by its customers, which has a positive impact on the company's financial statements.

Step-by-step explanation:

Recording receivables involves documenting and recognizing amounts owed to a company by its customers. This is done by creating a journal entry in the accounts receivable account, which increases the company's assets and revenue. The effect on financial statements includes an increase in total assets and an increase in net income.

User Daniyal Dehleh
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