Martin Supply Service Received $1 000 Cash from a Customer

Multiple Choice

Martin Supply Service received $1 000 cash from a customer which was owed to the business from the previous month. What is the effect of the cash receipt on the accounts of the business?

A) Cash increases; Accounts payable decreases.
B) Accounts payable increases; Owner's capital account decreases.
C) Cash account increases; Accounts receivable decreases.
D) Accounts receivable decreases; Owner's capital account decreases.