A service company receives a check from a customer as partial payment of his account balance.This transaction does not involve the sale of additional services.How should the entry be recorded?
A)Debit Cash and credit Accounts Receivable.
B)Debit Cash and credit Sales Revenue.
C)Debit Accounts Receivable and credit Cash.
D)Debit Cash and credit Deferred Revenue.

Question

Quizplus · Accepted Answer

The entry includes a debit to Cash (to increase this asset account)and a credit to Accounts Receivable (to decrease this asset account).

A Service Company Receives a Check from a Customer as Partial