A customer purchased $1,500 of services on credit two months ago and has just paid the bill.The receipt of the payment from the customer is recorded as a

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When a customer pays a bill on credit, it means they previously received services or goods but did not immediately pay for them. Therefore, the original transaction would have been recorded as a debit to Accounts Receivable (an asset account) and a credit to Revenue (an equity account). When the customer pays the bill, it reduces the balance in Accounts Receivable and increases the balance in Cash (another asset account). Therefore, the receipt of the payment from the customer is recorded as a debit to Cash and a credit to Accounts Receivable.

A Customer Purchased $1,500 of Services on Credit Two Months