Squidly Products sold and delivered modems to DetailSolutions in three equal installments over the next three months. The journal entry made by Squidly to record this transaction will include:
A) a decrease in Cash for $6,600.
B) an increase in Accounts Receivable for $6,600.
C) an increase in Accounts Receivable for $2,200.
D) a decrease in Sales Revenue for $6,600.

Question

Squidly Products sold and delivered modems to DetailSolutions in three equal installments over the next three months. The journal entry made by Squidly to record this transaction will include: 
A) a decrease in Cash for $6,600.
B) an increase in Accounts Receivable for $6,600.
C) an increase in Accounts Receivable for $2,200.
D) a decrease in Sales Revenue for $6,600.

Quizplus · Accepted Answer

The correct entry would be an increase in Accounts Receivable for the total amount of $6,600, as Squidly Products sold and delivered the modems on credit, expecting payment in the future.

Squidly Products Sold and Delivered Modems to DetailSolutions in Three