A business earns $4,000 from various charge account clients. To record this transaction, the business would:
A)Debit Accounts Receivable; Credit Fees Income
B)Debit Cash; Credit Accounts Receivable
C)Debit Accounts Payable; Credit Fees Income
D)Debit Accounts Receivable; Credit Cash

Question

Quizplus · Accepted Answer

Debiting Accounts Receivable and crediting Fees Income correctly reflects the increase in assets (Accounts Receivable) due to the earnings from charge account clients and the increase in income (Fees Income) from the services provided.

A Business Earns $4,000 from Various Charge Account Clients