Sunnyside Vacations has a $1,200 account receivable from the John Smith.On September 18, the John makes a partial payment of $1,100 to Sunnyside.The journal entry made on September 18 by Sunnyside to record this transaction includes:
A) A debit to the Cash account of $1,150.
B) A debit to the Accounts Receivable account of $1,150.
C) A credit to the accounts receivable account of $1,100.
D) A credit to the Accounts Receivable account of $1,050.

Question

Quizplus · Accepted Answer

The correct entry to record the partial payment involves debiting the Cash account for the amount received ($1,100) and crediting the Accounts Receivable account for the same amount to reflect the reduction in the amount owed by John Smith.

Sunnyside Vacations Has a $1,200 Account Receivable from the John