On August 15,a Customer Paid $5,000 for Services Provided a Month

Multiple Choice

On August 15,a customer paid $5,000 for services provided a month earlier.The customer was billed on August 1.How does this transaction affect the accounting equation?

A) Add $5,000 to Cash and add $5,000 to Service Revenue.
B) Add $5,000 to Cash and add $5,000 to Retained Earnings.
C) Add $5,000 to Cash and subtract $5,000 from Accounts Receivable.
D) Add $5,000 to Accounts Payable and add $5,000 to Cash.