A customer's remittance causes Cash to be debited and Accounts Receivable to be credited.This is an example of: ____ in the sales and distribution process.
A) Pre Sales Activities
B) Sales Order Processing
C) Inventory Sourcing
D) Delivery and Billing
E) Payment

Question

Quizplus · Accepted Answer

The given scenario involves the receipt of payment, which falls under the Payment phase of the sales and distribution process. The debit of Cash account shows the inflow of funds, and the credit of Accounts Receivable account indicates the reduction in the amount owed to the company. Hence, the correct choice is E - Payment.

A Customer's Remittance Causes Cash to Be Debited and Accounts