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If a business allows a customer to buy on credit, which of the following increases?Group of answer choicesInventoryAccounts PayableDebtAccounts Receivable

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If a business allows a customer to buy on credit, which of the following increases?Group of answer choicesInventoryAccounts PayableDebtAccounts Receivable
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Solution 1

If a business allows a customer to buy on credit, Accounts Receivable increases.

Here's why:

  1. 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.

  2. 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.

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.
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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