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

Name: Receipt of a payment on account requires a credit to Accounts Receivable.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

When a payment is received on account, it means that a customer has paid a portion of their outstanding balance. Therefore, the payment needs to be credited to the Accounts Receivable account in order to reduce the outstanding balance owed by the customer.

Receipt of a Payment on Account Requires a Credit to Accounts