Eagle News has a $6,000 account receivable from one of its advertisers,Allwood Floors.When Eagle receives $3,600 from Allwood as partial payment:
A)Eagle should debit Accounts Receivable for $3,600.
B)Eagle should credit Cash for $3,600.
C)Eagle should credit Accounts Receivable for $3,600.
D)Eagle makes no journal entry until the total of $6,000 is received from Allwood.

Question

Quizplus · Accepted Answer

When Eagle receives partial payment from Allwood Floors, they should credit the Accounts Receivable account for the amount received ($3,600). This will reduce the balance in the Accounts Receivable account to $2,400 ($6,000 - $3,600).

Eagle News Has a $6,000 Account Receivable from One of Its