Which of the following entries records the receipt of cash from clients on account? a. Accounts Receivable, debit; Fees Earned, credit b. Accounts Receivable, debit; Cash, credit c. Cash, debit; Accounts Receivable, credit d. Accounts Payable, debit; Fees Earned, credit

Question

Business

Marianna Larsen

12 October, 07:31

Which of the following entries records the receipt of cash from clients on account? a. Accounts Receivable, debit; Fees Earned, credit b. Accounts Receivable, debit; Cash, credit c. Cash, debit; Accounts Receivable, credit d. Accounts Payable, debit; Fees Earned, credit

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Answers (1)

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Geovanni Zuniga · Answer 1

c. Cash, debit; Accounts Receivable, credit

Explanation:

When sales are made on credit, the entries posted are;

Debit Account receivable

Credit Sales account

Being entries to recognize credit sales.

On receipt of cash from the client, the following entries are recorded;

Debit Cash account

Credit Account receivable

Being entries to recognize cash received from the client.

Hence the right option is c. Cash, debit; Accounts Receivable, credit