Collected a payment from a credit customer. This will be recorded with:
A) a credit to an asset account.
B) a credit to a liability account.
C) a credit to Revenue.
D) a credit to Sales Discounts account.

Question

Quizplus · Accepted Answer

Collecting a payment from a credit customer increases the company's cash or bank balance, which are asset accounts. Therefore, it is recorded with a credit to an asset account to decrease the accounts receivable (another asset account) and a debit to increase the cash or bank balance (also an asset account).

Collected a Payment from a Credit Customer