Squidly Products sold and delivered modems to Detail Solutions for $6,600 to be paid by Detail Solutions in three equal installments over the next three months.The journal entry made by Squidly to record this transaction will include:
A) A credit to Cash for $6,600.
B) A debit to Accounts Receivable for $6,600.
C) A debit to Accounts Receivable for $2,200.
D) A debit to Sales Revenue for $6,600.

Question

Quizplus · Accepted Answer

The correct journal entry to record the sale of modems on account (to be paid in installments) includes debiting Accounts Receivable for the full amount of the sale ($6,600), indicating that Squidly Products expects to receive this amount from Detail Solutions.

Squidly Products Sold and Delivered Modems to Detail Solutions for $6,600