Maryland Vacations has a $2,200 account receivable from the Miami Kiwanis. On March 11, the Kiwanis makes a partial payment of $1,050 to Maryland. The journal entry made on March 11 by Maryland to record this transaction includes:
A) an increase in the Cash account of $1,150.
B) an increase in the Accounts Receivable account of $1,150.
C) an increase in the Service Revenue account of $1,050.
D) a decrease in the Accounts Receivable account of $1,050.

Question

Quizplus · Accepted Answer

The partial payment reduces the amount owed by the Miami Kiwanis, so the Accounts Receivable account is decreased by the amount of the payment, $1,050.

Maryland Vacations Has a $2,200 Account Receivable from the Miami