Accounts Receivable has a normal balance of $1,000. After collecting $700, the balance in the account is
A) debit $300.
B) debit $1,700.
C) credit $300.
D) credit $1,700.

Question

Quizplus · Accepted Answer

When $700 is collected, it reduces the Accounts Receivable balance. The original balance is a debit of $1,000, so after collecting $700, the new balance is a debit of $300 ($1,000 - $700 = $300). Accounts Receivable is an asset account and normally has a debit balance.

Accounts Receivable Has a Normal Balance of $1,000