Received cash from customer.
A) Dr Accounts receivable Cr Cash
B) Dr Cash Cr Accounts payable
C) Dr Cash Cr Accounts receivable
D) None of the answers are correct.

Question

Quizplus · Accepted Answer

When receiving cash from a customer, it means that the customer is paying for something they owe to the company. This will reduce the company's accounts receivable, which is the amount that customers have yet to pay, and increase the company's cash holdings. Therefore, the correct journal entry would be to debit cash and credit accounts receivable. Option A is incorrect because it would increase accounts receivable and cash, which is not correct since the company is receiving payment. Option B is also incorrect because it implies that the company is paying off a debt to a supplier or vendor, which is not what is happening in this scenario. Option D is incorrect because one of the options is correct, so the statement "none of the answers are correct" is false.

Received Cash from Customer