What entry would be made in account receivable when a company has billed its client $230,000 during the financial year and client have sent in payments totalling $87,908.The business uses cash-based accounting?
A)$230,000
B)$87,908
C)0
D)$142,092.

Question

Quizplus · Accepted Answer

Since the business uses cash-based accounting, the entry in accounts receivable would not be made until the client's payment is received. Thus, the accounts receivable balance would be zero, as all payments have been received.

What Entry Would Be Made in Account Receivable When a Company