BizCom's customer, Redding, paid off an $8,300 balance on its account receivable. BizCom should record the transaction as a debit to Accounts Receivable-Redding and a credit to Cash.

Question

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When a customer pays off an account receivable, BizCom should debit Cash and credit Accounts Receivable-Redding to reflect the increase in cash and the decrease in the receivable.

BizCom's Customer, Redding, Paid Off an $8,300 Balance on Its