If a business allows a customer to buy on credit, which of the following increases?Group of answer choicesInventoryAccounts PayableDebtAccounts Receivable
Question
Solution 1
If a business allows a customer to buy on credit, Accounts Receivable increases.
Here's why:
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When a business sells goods or services to a customer on credit, it means the customer promises to pay the business at a later date.
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This promise to pay is recorded as an account receivable on the b Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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