Atkins Company Collected $1,750 as Payment for the Amount Owed

Multiple Choice

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?

A) Assets would increase $1,750 and equity would increase $1,750.
B) Liabilities would decrease $1,750 and equity would increase $1,750.
C) One asset would increase $1,750 and a different asset would decrease $1,750, causing no net change in the accounting equation.
D) Assets would decrease $1,750 and liabilities would decrease $1,750.
E) Assets would increase $1,750 and liabilities would increase $1,750.