Identify the journal entry required to correctly record the following transaction. Received cash from customer.
A) DR Accounts receivable
CR Cash
B) DR Cash
CR Accounts payable
C) DR Cash
CR Accounts receivable
D) None of the above

Question

Quizplus · Accepted Answer

When cash is received from a customer, it increases the company's cash balance, so Cash account should be debited. If the cash received is for a sale that was previously made on credit, the Accounts Receivable account, which represents the amount owed by customers, should be credited to reflect that the receivable has been collected. Therefore, the correct journal entry is to debit Cash and credit Accounts Receivable.

Identify the Journal Entry Required to Correctly Record the Following