Victoria received $200 from customers in partial payment for accounting services performed previously.The recording of this transaction would:
A)increase Cash and Victoria's Capital $200.
B)increase Cash and decrease Accounts Receivable $200.
C)increase Cash and increase Accounts Receivable $200.
D)decrease Accounts Receivable and increase Victoria's Capital $200.

Question

Quizplus · Accepted Answer

The $200 received is a partial payment for accounting services already performed, which means that it should be recorded as a decrease in Accounts Receivable (asset account) and an increase in Cash (also an asset account). Victoria's Capital (equity account) is not affected by this transaction.

Victoria Received $200 from Customers in Partial Payment for Accounting