Victoria received $1,000 from customers in partial payment for accounting services performed previously. The recording of this transaction would:
A) increase Cash and Victoria's Capital $1,000.
B) increase Cash and decrease Accounts Receivable $1,000.
C) increase Cash and increase Accounts Receivable $1,000.
D) decrease Accounts Receivable and increase Victoria's Capital $1,000.

Question

Quizplus · Accepted Answer

Receiving cash in partial payment for services previously performed increases the Cash account while decreasing the Accounts Receivable account, as the amount owed by customers is being paid off.

Victoria Received $1,000 from Customers in Partial Payment for Accounting