A business sells inventory for $220, receiving $100 cash as a deposit with the customer owing the remainder. The journal entry will include:

Name: A business sells inventory for $220, receiving $100 cash as a deposit with the customer owing the remainder. The journal entry will include:
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Question

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The journal entry should record the cash received and the amount owed by the customer. The cash received is $100, and the remaining $120 is owed, which is recorded as a debit to accounts receivable.

A Business Sells Inventory for $220, Receiving $100 Cash as a Deposit