A business earns $4,000 from various charge account clients.To record this transaction,the business would:
A) Debit Accounts Receivable;Credit Cash
B) Debit Accounts Receivable;Credit Revenue
C) Debit Cash;Credit Accounts Receivable
D) Debit Accounts Payable;Credit Revenue

Question

Quizplus · Accepted Answer

When a business earns revenue from its charge account clients, it must debit its Accounts Receivable account (to record an increase in the amount owed by its customers) and credit its Revenue account (to record the earnings from sales). Therefore, the correct choice is to Debit Accounts Receivable and Credit Revenue.

A Business Earns $4,000 from Various Charge Account Clients