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On August 15,a Customer Paid $3,000 for Services Provided a Month

Question 92

Multiple Choice

On August 15,a customer paid $3,000 for services provided a month earlier.The customer was billed on August 1.In transaction analysis,how does this transaction affect the accounting equation?


A) Add $3,000 to Cash account and add $3,000 to Service Revenue account.
B) Add $3,000 to Cash account and add $3,000 to Retained Earnings account.
C) Add $3,000 to Cash account and subtract $3,000 from Accounts Receivable account.
D) Add $3,000 to Accounts Payable account and add $3,000 to Cash account.

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