When a business is able to deposit its credit card sales invoices directly into a special bank account,it debits Cash,not Accounts Receivable.

Question

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When a business deposits its credit card sales invoices directly into a special bank account, the amount received is immediately credited to the business's account. Since the business has already received the payment, it does not need to record the amount in the Accounts Receivable account. Instead, it should debit Cash to show that it has received the cash. Therefore, the statement is true.

When a Business Is Able to Deposit Its Credit Card