A customer received and then paid a $9,000 utility bill from Maryland Power Company. The journal entry by Maryland Power Company to record receipt of the payment would include:
A) A credit to Accounts Payable
B) A credit to Accounts Receivable
C) A credit to Utilities Revenue
D) A debit to Accounts Receivable

Question

Quizplus · Accepted Answer

When Maryland Power Company receives payment for a utility bill, they credit Accounts Receivable to decrease the amount owed by the customer, reflecting the payment received.

A Customer Received and Then Paid a $9,000 Utility Bill