What is the GL entry when a company receives a payment from a customer?
A)Debit revenue,credit customer
B)Debit customer,credit revenue
C)Debit bank,credit customer,credit accounts reconciliation account
D)Debit accounts reconciliation account,credit bank
E)Debit accounts reconciliation account,debit customer,credit bank

Question

Quizplus · Accepted Answer

When a company receives a payment from a customer, the cash or bank balance increases (debit bank) and the customer's outstanding balance decreases (credit customer). The mention of an accounts reconciliation account is not standard for a simple payment receipt transaction, making option C incorrect in a typical accounting scenario. However, based on the given options and typical accounting practices, receiving a payment would directly affect the bank and customer accounts, not the accounts mentioned in C. Therefore, there seems to be a misunderstanding in the explanation provided, as the correct standard entry for receiving a payment from a customer should be to debit the bank (increasing assets) and credit the customer (decreasing liabilities), which is not precisely reflected in the provided options.

What Is the GL Entry When a Company Receives a Payment