A service company receives a check from a customer as partial payment of his account balance.This transaction does not involve the sale of additional services.How should the entry be recorded?
A) Debit Cash and credit Accounts Receivable
B) Debit Cash and credit Sales Revenue
C) Debit Accounts Receivable and credit Cash
D) Debit Cash and credit Unearned Revenue

Question

Quizplus · Accepted Answer

The transaction involves receiving cash for an outstanding account receivable, so Cash is debited and Accounts Receivable is credited.

A Service Company Receives a Check from a Customer as Partial