Question

C. In JuneNikea Inc. received the $10,000 payment from XYZWhich of Nikea's accounts are affected by this transaction and what is its effect on the accounting equation?

Answer 1

Answer:

The $10,000 collected by Nikea represent the collections of an accounts receivable, the journal entry should be:

Dr Cash 10,000

    Cr Accounts receivable 10,000

In this case, an asset (accounts receivable) will decrease while another asset (cash) will increase). The accounting equation will not change since one assets replaces the other.

Explanation: