Explore BrainMass

Explore BrainMass

    Sales increase, and terms are extended to customers

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    When sales increase, and terms are extended to customers, accounts receivable increases. Of course when purchasing goods from suppliers, payables increase. What makes the cash account drop when there are both receivables and payables on the books during the increased sales activity?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:30 pm ad1c9bdddf
    https://brainmass.com/business/auditing/when-sales-increase-and-terms-are-extended-to-customers-accounts-receivable-increases-234192

    Solution Preview

    Given that the sales increases as a result of extending credits to customers, and that payables increases as a ...

    Solution Summary

    The solution determines sales increase, and terms are extended to customers, accounts receivable increases. What makes cash accounts drop when there are both receivable and payables on the books

    $2.19

    ADVERTISEMENT