The sale of merchandise to a customer partly for cash and partly on account would require which of the following?

Question

Quizplus · Accepted Answer

Selling merchandise partly for cash and partly on account means that the customer is paying a portion of the sale in cash and owing the rest to the company. This transaction would result in an increase in Accounts receivable (as the portion owed on account is now a new balance in Accounts receivable), an increase in Cash (as the portion paid in cash is new money received by the company), and an increase in Sales revenue (as the total sale amount is recognized as revenue). Therefore, choice A is the best choice.

The Sale of Merchandise to a Customer Partly for Cash