On April 1, Snell Company made a $50,000 sale giving the customer terms of 3/10, n/30. The receivable was collected from the customer on April 8. How does the collection of cash from the customer affect the company's financial statements? Assets = Liab. + Stk. Equity Rev. - Exp. = Net Inc. Stmt of Cash Flows A. (1,500) = NA + (1,500) (1,500) - NA = (1,500) 48,500 OA B. (1,500) = NA + (1,500) (1,500) - NA = (1,500) NA C. (1,500) = NA + (1,500) NA - (1,500) = 500 1,500 OA D. 48,500 = NA + 48,500 48,500 - NA = 48,500 48,500 OA

A.(1,500) = NA + (1,500) (1,500) - NA = (1,500) 48,500 OA

Explanation:

Cash discount=$50,000*3%=1,500

Cash from Customer=$50,000-$1,500=$48,500

Collection from customer will be reflected in current assets as whole part of total assets.

Therefore because of cash discount net assets will be reduced by $1,500 as it will no longer be received. Where as Cash of$48,500 will increase net assets.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.