What is the journal entry to be recorded by
A) Option A
B) Option B
C) Option C
D) Option D
E) Flynn Company on November 8?

Question

What is the journal entry to be recorded by
A) Option A 
B) Option B 
C) Option C 
D) Option D 
E) Flynn Company on November 8?

Quizplus · Accepted Answer

Option B represents the correct journal entry. This is because it correctly records the receipt of $2,000 from a customer as cash and the reduction of the customer's accounts receivable balance by $2,000. Option A is incorrect because it fails to record the reduction of the accounts receivable balance. Option C is incorrect because the use of the suspense account is not necessary in this case. Option D is incorrect because it records the receipt of cash twice, which would overstate the company's cash balance.

What Is the Journal Entry to Be Recorded by