When services are sold on account, the amount is recorded in the
A) Accounts Receivable Debit column and Cash Credit column.
B) General Credit column and Cash Debit column.
C) Accounts Receivable Debit column and Sales Credit column.
D) General Debit column and Accounts Payable Debit column.

Question

Quizplus · Accepted Answer

When services are sold on account, the transaction increases Accounts Receivable (an asset) and increases Sales (revenue). Therefore, Accounts Receivable is debited, and Sales is credited.

When Services Are Sold on Account, the Amount Is Recorded