Which of the following transactions would be appropriately processed in the sales/collection process?
A)THT Corporation purchased merchandise on account from HRS Corporation.
B)HRS Corporation received cash from THT Corporation for a previous sale on account.
C)Both THT Corporation purchased merchandise on account from HRS Corporation and HRS Corporation received cash from THT Corporation for a previous sale on account.
D)Neither THT Corporation purchased merchandise on account from HRS Corporation nor HRS Corporation received cash from THT Corporation for a previous sale on account.

Question

Quizplus · Accepted Answer

The sales/collection process includes both the sale of merchandise on account (credit sales) and the collection of cash from customers for those sales. Thus, both transactions described in options A and B are part of the sales/collection process.

Which of the Following Transactions Would Be Appropriately Processed in the Sales/collection