When a sale is made to a customer who pays with a debit card,the company records:
A)A debit to Accounts Payable.
B)A debit to Accounts Receivable.
C)A debit to Cash.

Question

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When a sale is made and the customer pays with a debit card, the company receives cash. Therefore, the company records a debit to Cash to reflect the increase in its cash balance. Choice A (a debit to Accounts Payable) would be recorded if the company purchased something on credit and had to pay the vendor later. Choice B (a debit to Accounts Receivable) would be recorded if the company made a sale on credit and expects the customer to pay later.

When a Sale Is Made to a Customer Who Pays