Mullis Company sold merchandise on account to a customer for $625,terms n/30.The journal entry to record the collection on account would be:
A)Debit Cash of $625 and credit Sales $625.
B)Debit Cash of $625 and credit Accounts Receivable $625.
C)Debit Accounts Receivable $625 and credit Sales $625.
D)Debit Accounts Receivable $625 and credit Cash $625.
E)Debit Sales $625 and credit Accounts Receivable $625.

Question

Quizplus · Accepted Answer

When a company collects on account, it debits Cash and credits Accounts Receivable.

Mullis Company Sold Merchandise on Account to a Customer for $625,terms