Recording the collection of accounts receivable from customers involves:
A) Increasing Accounts Receivable and decreasing Cash
B) Increasing Cash and increasing Service Fees Earned
C) Increasing Cash and increasing Accounts Payable
D) Increasing Cash and decreasing Accounts Receivable
E) None of the above

Question

Quizplus · Accepted Answer

Recording the collection of accounts receivable involves increasing cash (because you are receiving money) and decreasing accounts receivable (because the customer's debt to you is being reduced).

Recording the Collection of Accounts Receivable from Customers Involves