Identify the journal entry required to correctly record the following transaction. Received cash from customer.
A) Dr Accounts receivable
Cr Cash
B) Dr Cash
Cr Accounts payable
C) Dr Cash
Cr Accounts receivable
D) Dr Cash
Cr Share capital

Question

Quizplus · Accepted Answer

When cash is received from a customer, it increases the company's cash balance, so Cash account is debited. If the cash received is for a sale made on credit previously, the Accounts Receivable is credited to reduce the amount owed by the customer, reflecting the receipt of payment.

Identify the Journal Entry Required to Correctly Record the Following