Answer:
Dr Cash/Bank $2,250
Cr Account Receivable $2,250
Step-by-step explanation:
At the time the transaction was carried out, that is the previous month, the accounting entries was a debit to account receivable (client account) and a credit to sales account. which is as shown below:
Dr Account Receivable $2,250
Cr Sales $2,250
Being sales on credit to a client.
The client account will have an outstanding debit balance of $2,250 until payment is made. once payment is made, the following entries will be made to ensure no outstanding balance in the client account.
Dr Cash/Bank $2,250
Cr Account Receivable $2,250.
