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1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?​
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1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?​

User Uttam Palkar
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1 Answer

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On the day the cash is received, the Cash account increases, and because of the double entry system, the asset account Accounts Receivable is decreased.
User Donielle
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