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17 April, 06:06

A company made the following journal entry: Cash 5,000 Accounts Receivable 5,000 This journal entry reflects which of the following transactions? Earning a revenue and will receive the amount from the customerat a future date. The payment of an account. Investment of cash in the business by the owner. The collection of an account.

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  1. 17 April, 06:58
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    The answer is: The collection of an account.

    Explanation:

    Both cash and accounts receivable are asset accounts. When an asset account is debited it means it increases (cash increased by $5,000). When an asset account is credited, it means it decreases (accounts receivable decreased by $5,000).

    So if accounts receivable decreased and cash increased, it means that an account was collected.
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