If accounts receivable accounts with credit balances are significant,they should be
A)written off.
B)reclassified as accounts payable.
C)corrected by making adjusting entries.
D)moved to the debit side.

Question

Quizplus · Accepted Answer

Accounts receivable with credit balances typically indicate that a customer has overpaid or a payment has been mistakenly recorded. These should be reclassified as accounts payable, reflecting the company's obligation to either refund the customer or apply the credit to future purchases.

If Accounts Receivable Accounts with Credit Balances Are Significant,they Should