Tomi See CPA has billed her clients for services performed. She subsequently receives payments from her clients. What entry will Tomi make upon receipt of the payments?

Question

Quizplus · Accepted Answer

When Tomi receives payments from her clients for services already billed, she increases her cash account (debit Cash) and decreases her accounts receivable (credit Accounts Receivable), reflecting that the clients have paid their outstanding invoices.

Tomi See CPA Has Billed Her Clients for Services Performed