Stanley Company earns $8,000 of revenue on account in Year 1. Cash collections of receivables amount to $4,500 in Year 1 with the remainder being collected in Year 2. Which of the following shows how the recognition of revenue in Year 1 will affect the company's accounting equation? + Balance Sheet Assets = Liabilities + Stockholders' Equity Accounts Accounts Retained Cash Receivable Payable Common Stock Earnings A. 4,500 4,500 B. 4,500 4,000 c. 8,000 8,000 D. 8,000 8,000 Multiple Choice Option Ootion D