When charge customers pay cash to apply against their accounts, the amount is recorded:
A)on the left side of the Cash account and the right side of the Fees Income account.
B)on the left side of the Cash account and the right side of the Accounts Receivable account.
C)on the left side of the Accounts Payable account and the right side of the Cash account.
D)on the left side of the Cash account and the left side of the Accounts Receivable account.

Question

Quizplus · Accepted Answer

When customers pay cash to apply against their accounts, it means they are reducing their accounts receivable balance. Thus, the amount is recorded on the left side (debit) of the Cash account (the asset that increases) and on the right side (credit) of the Accounts Receivable account (the asset that decreases).

When Charge Customers Pay Cash to Apply Against Their Accounts