A customer received and then paid a $9,000 utility bill from Maryland Power Company. The entry by Maryland Power Company to record receipt of the payment would include:
A) An increase to Accounts Payable
B) A decrease to Accounts Receivable
C) An increase to Utilities Revenue
D) An increase to Accounts Receivable

Question

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When Maryland Power Company receives payment for a utility bill, it would record a decrease in Accounts Receivable, reflecting that the customer's outstanding balance has been settled.

A Customer Received and Then Paid a $9,000 Utility Bill