During the current week, Julissa, (1) received a cash payment for services previously billed to one of her clients. Also, she (2) paid her telephone bill, and (3) bought equipment on credit.
For the three separate transactions, at least one of the journal entries will include a:
A) Credit to Retained Earnings
B) Debit to Notes Payable
C) Debit to Accounts Receivable
D) Credit to Accounts Receivable

Question

Quizplus · Accepted Answer

The first current transaction includes a credit to accounts receivable.
Entry when revenue earned and bill sent: - pre-transaction (1)
 11ee7640_e201_d7a0_90da_ad4c2028e5e6_TBCB1007_00 Entry when payment received: - transaction (1)
 11ee7640_e201_d7a1_90da_39f4f6dbaf08_TBCB1007_00 Entry when telephone bill is paid: - transaction (2)
 11ee7640_e201_d7a2_90da_2f72c0328af1_TBCB1007_00 Entry when equipment on credit purchased: - transaction (3)
 11ee7640_e201_d7a3_90da_bbb1b421dec0_TBCB1007_00

During the Current Week, Julissa, (1) Received a Cash Payment