When charge customers pay cash to apply against their accounts,the amount is recorded
A) on the left side of the Cash account and the right side of the Fees Income account.
B) on the left side of the Accounts Payable account and the right side of the Cash account.
C) on the left side of the Cash account and the right side of the Accounts Receivable account.
D) on the left side of the Cash account and the left side of the Accounts Receivable account.

Question

Quizplus · Accepted Answer

When customers pay cash to apply against their accounts, it means they are paying off their outstanding balances, which is recorded as a reduction in the Accounts Receivable account (credit) and an increase in the Cash account (debit). Therefore, the correct option is C where the amount is recorded on the left side (credit) of the Cash account and the right side (debit) of the Accounts Receivable account. Option A is incorrect because Fees Income account is not affected by the cash payment. Option B is incorrect because Accounts Payable account is not applicable in this scenario. Option D is incorrect because the amount cannot be recorded on the left side (debit) of two accounts.

When Charge Customers Pay Cash to Apply Against Their Accounts,the