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Montgomery Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect

Montgomery Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?

Cash increases and Accounts Payable decreases

Cash increases and Service Revenue increases

Cash increases and Accounts Receivable decreases

Accounts Receivable increases and Service Revenue increases

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