A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is th

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answerhappygod
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A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is th

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A receipt of $15,700 cash from a customer as a payment on
account was incorrectly credit to service revenue. Which is the
effect of this error on the company's financial statements?
Multiple Choice
Assets are understated by $31,400 and liabilities are
understated by $31,400.
Assets are overstated by $31,400 and owners' equity is
overstated by $31,400.
Assets are overstated by $15,700 and owners' equity is
overstated by $15,700.
Assets are understated by $15,700 and liabilities are
understated by $15,700.
Assets are understated by $15,700 and owners' equity is
understated by $15,700.
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