Reference no: EM132615554

Problem 1: A firm sold goods for $50,000. $10,000 was paid in cash, and the remaining $40,000 was assigned to a customer's credit account. The goods originally cost $30,000. What are the net changes to the accounts impacted by this transaction?

Option 1: A net decrease in Total Assets, a net decrease in Total Shareholders' Equity

Option 2: A net decrease in Total Liabilities, a net increase in Total Assets, a net increase in Total Shareholders' Equity

Option 3: A net increase in Total Liabilities, a net decrease in Total Assets, a net decrease in Total Shareholders' Equity

Option 4: A net increase in Total Assets, a net increase in Total Shareholders' Equity