A customer purchased $1,500 of services on credit two months ago and has just paid the bill.The receipt of the payment from the customer is recorded as a

Question

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When a customer pays a bill on credit, it reduces the Accounts Receivable balance. This means that we need to debit Cash (to increase the Cash balance) and credit Accounts Receivable (to reduce the balance owed by the customer). Therefore, the correct entry is A).

A Customer Purchased $1,500 of Services on Credit Two Months