Receipt of a payment on account requires a credit to Accounts Payable.

Name: Receipt of a payment on account requires a credit to Accounts Payable.
Brand: Quizplus
Rating: 4.7 (56 reviews)

Question

Quizplus · Accepted Answer

Receipt of a payment on account requires a credit to Accounts Receivable, not Accounts Payable. Accounts Payable is used to record the amount owed by the company to its suppliers or creditors, while Accounts Receivable is used to record the amount owed to the company by its customers.

Receipt of a Payment on Account Requires a Credit to Accounts