Sally Corp B) C) D)

Sally Corp. received payment on a long-term receivable for $980,000. What effect does this transaction have on these accounts?

A) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { Increase by } \$ 980,000 & \text { Decrease by } \$ 980,000 & \text { No effect } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { Decrease by } \$ 980,000 & \text { Increase by } \$ 980,000 & \text { No effect } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { No effect } & \text { Decrease by } \$ 980,000 & \text { No effect } \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { No effect } & \text { No effect } & \text { No effect } \\\hline\end{array}$$

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free