Answer:
Correct option is C. increases an asset $3500; decreases an asset $3500
Explanation:
Before collection from accounts receivable there is an asset of $3,500 in accounts receivable.
When it is received then there is collection of $3,500 either in cash or at bank, with that the effect on accounts receivable asset is that it is reduced, by $3,500; and with the same thing cash or bank balance which is also an asset is increased.
Therefore correct option is C.
increases an asset $3500; decreases an asset $3500
Increase in Cash/Bank
Decrease in Accounts Receivable
