Decrease in Liability & Increase in Owner's Liability
Increase in Liability & Decrease in Owner's Liability
Increase in Asset & Owner's Liability
Increase in Liability & Owner's Liability
Decrease in Asset & Owner's Liability
A
Decrease in Asset & Owner's Liability
B
Increase in Liability & Owner's Liability
C
Decrease in Liability & Increase in Owner's Liability
D
Increase in Asset & Owner's Liability
E
Increase in Liability & Decrease in Owner's Liability
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Solution
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Cash will increase and bad debts recovered is considered as an income. Therefore, there will be an increase in the asset and capital.
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