Question

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

Answer 1

Answer:

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