Included in the bank statement was a credit received from a customer to settle their account.What entry is required in the company's accounts?
A) Dr Cash$\quad $$\quad $$\quad $Cr Accounts receivable
B) Dr Cash$\quad $$\quad $$\quad $Cr Sales
C) Dr Accounts receivable$\quad $Cr Cash
D) Dr Sales$\quad $$\quad $$\quad $Cr Cash

Question

Quizplus · Accepted Answer

When a customer settles their account by paying cash, the company should debit Cash (to increase the asset) and credit Accounts Receivable (to decrease the amount owed by the customer).

Included in the Bank Statement Was a Credit Received from a Customer