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marissa [1.9K]
2 years ago
10

Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11, Pumpkin collected the cash from that cu

stomer. What is the impact on Pumpkin's accounting equation from the collection of cash?
Business
1 answer:
Serggg [28]2 years ago
6 0

Answer:

No Net Impact on Pumpkin's Accounting Equation from collection of cash.

Explanation:

Sales transaction has already been recorded and there is a Account receivable with $500 balance which is an asset account. On January 11 Cash has been received and the transaction was as follows:

Dr. Cash                         $500

Cr. Account receivable $500

Cash and Account receivable are both assets account therefore there will be no net impact on pumpkin's accounting equation one type of asset account balance is increasing the other type of asset account balance is decreasing when we post transaction.

Accounting Equation

                                           Asset     =     Equity  +  Liability

Dr. Cash                             +500                0                0

Cr. Account Receivable    <u>-500                 0                0</u>

Total Impact                      <u>     0                   0                0</u>

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What is it about incentive systems that makes them so attractive to leaders attempting to implement organizational change
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If net operating income is $83,000, average operating assets are $415,000, and the minimum required rate of return is 13%, what
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$29,050

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= $83,000 - $53,950  

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2 years ago
Read 2 more answers
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
hjlf

Answer:

$17.97 per unit

Explanation:

Using weighted average method, Equivalent units = Units that are completed during the period + Equivalent units in process at the end of period.

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