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Problem 1: When the entity's customer eventually pays for items that have been purchased on credit previously, the transaction will affect:
A. An asset and a liability.
B. An asset and an expense.
C. Two assets.
D. An asset and income.
E. None of the above.
Problem 2: If sales are $45 000, and the beginning and closing accounts receivable balances are $33 000 and $42 000 respectively, what are the cash receipts from customers?
A. $30 000
B. $54 000
C. $36 000
D. $53 000
E. $120 000
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