When cash is received on account, the amount is recorded in the
A) Sales Credit column and Cash Debit column.
B) General Debit column and Cash Credit column.
C) Accounts Receivable Credit column and Cash Debit column.
D) General Debit column and Accounts Payable Debit column.

Question

Quizplus · Accepted Answer

When cash is received on account, it means that a receivable is being collected. Therefore, the transaction decreases Accounts Receivable (a credit to Accounts Receivable) and increases Cash (a debit to Cash). This is accurately reflected in option C.

When Cash Is Received on Account, the Amount Is Recorded