Which of the following entries records the receipt of cash from patients on account?
A) Accounts Payable, debit; Fees Earned, credit
B) Accounts Receivable, debit; Fees Earned, credit
C) Accounts Receivable, debit; Cash, credit
D) Cash, debit; Accounts Receivable, credit

Question

Quizplus · Accepted Answer

The entry that records the receipt of cash from patients on account is Cash, debit; Accounts Receivable, credit. This is because cash is received, which increases the cash account, and the accounts receivable account is credited to show that the amount owed by patients has been reduced. Option A records a transaction involving accounts payable instead of accounts receivable, while option B records a transaction involving the increase in accounts receivable but not the receipt of cash. Option C records a transaction involving an increase in accounts receivable but makes no mention of the receipt of cash.

Which of the Following Entries Records the Receipt of Cash