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Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include which of the following?

ACash and capital increase of $12,000
BCash and revenue increase of $12,000
CCash increase and accounts receivable decrease of $12,000
DAccounts receivable decrease and capital increase of $12,000

Verified Answer :

meerkat18

The expanded accounting equation would include the following.

C.) Cash Increase and Accounts Receivable decrease of 12,000.

Initial journal entry would be:

debit: Accounts Receivable 12,000
           Credit:    Sales                        12,000

Collection of 12,000

debit: Cash                          12,000
            Credit: Accounts Receivable  12,000

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