On May 10, a business collected $3300 on account. What journal entry is needed on that date?
A)Debit Cash for $3300 and credit Revenue for $3300.
B)Debit Accounts Receivable for $3300 and credit Revenue for $3300.
C)Debit Cash for $3300 and credit Accounts Receivable for $3300.
D)Debit Accounts Payable for $3300 and credit Revenue for $3300.

Question

Quizplus · Accepted Answer

When a business collects cash on account, it means they are receiving payment for a previous sale made on credit. The correct journal entry is to debit Cash (increasing the cash account) and credit Accounts Receivable (decreasing the amount owed by customers).

On May 10, a Business Collected $3300 on Account