The entry to journalize the receipt of cash for the value of a time draft includes a
A) debit to Time Drafts Receivable and a credit to Cash.
B) debit to Cash and a credit to Time Drafts Receivable.
C) debit to Cash and a credit to Sales.
D) debit to Sales and a credit to Cash.

Question

Quizplus · Accepted Answer

When a time draft is paid, the company receives cash, so Cash is debited. Time Drafts Receivable is credited because the receivable is settled.

The Entry to Journalize the Receipt of Cash for the Value