Shrek Cyclery sells a bicycle to W.O'Connor,a customer who uses Empress Charge (a national credit card,but not issued by a bank).In recording this sale,Shrek Cyclery should record:
A)An account receivable from W.O'Connor.
B)A cash receipt.
C)An account receivable from Empress Charge.
D)A small increase in the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Shrek Cyclery should record an account receivable from Empress Charge, as they are the ones who will be paying for the purchase, not the customer W.O'Connor.

Shrek Cyclery Sells a Bicycle to W