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Dahasolnce [82]
3 years ago
11

A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. Record this tra

nsaction into the accounting equation of Landen Consulting by: (Check all that apply.)
Business
1 answer:
Pavlova-9 [17]3 years ago
5 0

Answer:

See answer below

Explanation:

In the books of Landen Consulting, the cash payment will be recorded as follows.

Debit Cash Account $400

Credit Account Receivables $400 (this would have been Revenue if the payment was made in the same month).

Since both accounts affected are assets account, the effect of the transaction on the accounting equation will be as follows.

Equity + Liabilities = Assets

Equity + Liabilities = Assets + Cash ($400) - Account Receivables ($400)

= Equity + Liabilities = Assets.

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