Which of the following transactions would be appropriately processed in the sales / collection process?
A)THT Corporation purchased merchandise on account from HRS Corporation.
B)HRS Corporation received cash from THT Corporation for a previous sale on account.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Option A involves the purchase of merchandise on account, which is a typical transaction in the sales process.
Option B involves the collection of cash from a customer for a previous sale on account, which is a typical transaction in the collection process. Therefore, both A and B are appropriately processed in the sales/collection process.

Which of the Following Transactions Would Be Appropriately Processed in the Sales