The sale of merchandise to a customer partly for cash and partly on account would require which of the following?
A)increase in Accounts Receivable,increase in Cash,increase in Sales Revenue
B)increase in Cash,decrease in Accounts Payable,increase in Sales Revenue
C)increase in Cash,increase in Sales Revenue
D)decrease in Accounts Payable,increase in Accounts Receivable,increase in Sales Revenue

Question

Quizplus · Accepted Answer

When a customer buys merchandise partly for cash and partly on account, the sale will increase both cash (from the cash received) and accounts receivable (from the credit sale). The revenue from the sale will also increase. Therefore, choice A is the correct answer. Choice B is incorrect because there is no decrease in accounts payable in this transaction. Choice C is incorrect because there is no increase in accounts receivable in this transaction. Choice D is incorrect because there is no decrease in accounts payable in this transaction.

The Sale of Merchandise to a Customer Partly for Cash