Question

Victoria received $500 from customers in partial payment for accounting services performed
previously. The recording of this transaction would
A) increase Cash and increase Accounts Receivable $500.
B) decrease Accounts Receivable and increase Victoria's Capital $500.
C) increase Cash and decrease Accounts Receivable $500.
D) increase Cash and Victoria's Capital $500

Answer 1

Answer:

C) increase Cash and decrease Accounts Receivable $500

Answer 2

Victoria received $500 from customers in partial payment for accounting services performed previously, then he increases Cash and decrease Accounts Receivable $500.

What is Accounts Receivable?

Accounts receivable, is often known as AR or A/R, are legally enforceable claims for payment held by a company for products or services provided but not paid for by consumers.

The amount of account receivables increases as the payment is due from some debtors, and it decreases as the payment is received from the debtors.

In the given case, Victoria received $500 from customers in partial payment for accounting services performed previously, then the amount of cash in hand increases and the account receivables decreases as the amount is received from the past debtors.

Therefore, option C is correct.

Learn more about the accounts receivable refer to:

https://brainly.com/question/24261944

#SPJ2