Adjustments to accounts receivable for payments received from customers is based upon
A)the customer's check
B)the cash prelist
C)the remittance advice that accompanies payment
D)a memo prepared in the mail room

Question

Quizplus · Accepted Answer

The remittance advice that accompanies payment contains information about which customer accounts the payment is for and how much should be applied to each account. This is used to make adjustments to accounts receivable. The customer's check is also a form of payment, but it does not provide information about how to apply the payment to specific customer accounts. The cash prelist and memo prepared in the mail room are internal documents that may be used to track payments, but they do not contain information about specific customer accounts.

Adjustments to Accounts Receivable for Payments Received from Customers Is