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The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable. If this error is not corrected:

The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable. If this error is not corrected:

Total liabilities are understated.

Total assets are understated.

Total liabilities are overstated.

Owners' equity is overstated.

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