Fitch Supply Services received $1,000 cash from a customer;

Fitch Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?

A) Accounts Receivable increases and Service Revenue increases
B) Cash increases and Accounts Receivable decreases
C) Cash increases and Service Revenue increases
D) Cash increases and Accounts Payable decreases

ANSWER

B