A customer increases sales by $500, paying $150 in cash and putting the rest on account. Which account is not affected by this transaction?

Question

Quizplus · Accepted Answer

Accounts payable is not affected by this transaction because this account is used to record the amounts owed by a company to its creditors/suppliers. In this scenario, the customer is making a purchase (increasing sales) and paying part in cash and the rest on account, which would affect Cash, Accounts Receivable (for the amount put on account by the customer), and Sales accounts, but not Accounts Payable.

A Customer Increases Sales by $500, Paying $150 in Cash