A company sells merchandise on a deferred payment plan,ultimately receiving $6,000 on the account receivable.On the payment date,the company would
A)credit Accounts Receivable for less than $6,000.
B)debit Interest Income for the imputed amount.
C)credit Sales for less than $6,000.
D)debit the asset account for $6,000.

Question

Quizplus · Accepted Answer

When the company receives the payment of $6,000, it will credit Accounts Receivable for the full amount of $6,000 to remove the receivable from its books, as the payment has been received.

A Company Sells Merchandise on a Deferred Payment Plan,ultimately Receiving