A credit to the accounts receivable account
A) indicates an increase in the amount owed by customers.
B) indicates a decrease in the amount owed by customers.
C) is an error.
D) must be accompanied by a debit to an liability account.

Question

Quizplus · Accepted Answer

A credit to the accounts receivable account indicates a decrease in the amount owed by customers, as it typically reflects payments received or adjustments reducing the balance owed.

A Credit to the Accounts Receivable Account