The following cash receipts headings have been suggested for Tower Tree-Trimming Service Company. Which of the following statements is false?
$\begin{array}{|l|l|l|l|l|l|}
\hline \text { Date } & \text { Account Debited } & \begin{array}{l}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Accounts Receivable Cr. } & \begin{array}{l}
\text { Cash } \
\text { Cr. }
\end{array} & \text { Other Accounts Dr. } \
\hline & & & & & \
\hline & & & & &
\end{array}$

Question

Quizplus · Accepted Answer

The Accounts Receivable column should be a credit because when cash is received, it is reducing the amount owed by the customer, which is a credit to the accounts receivable account. Therefore, the cash column should be a debit (increasing the cash account) and the other accounts column should be a credit (reducing the accounts receivable balance). The second column should be labeled as "Account Debited" instead of "Account Credited."

The Following Cash Receipts Headings Have Been Suggested for Tower