The journal entry for the receipt of cash from accounts receivable is:

Question

Quizplus · Accepted Answer

When cash is received from accounts receivable, the accounts receivable account is credited to reflect the decrease in the amount owed by customers, and the cash account is debited to reflect the increase in the cash balance. Option A is incorrect because it records a sale rather than a receipt of cash. Option B is incorrect because it incorrectly records a debit to accounts receivable instead of a credit. Option D is incorrect because it records a credit to sales instead of a debit to cash.

The Journal Entry for the Receipt of Cash from Accounts