A Company Received $75 000 from a Customer 'On Account

question 5

Multiple Choice

A company received $75 000 from a customer 'on account'.The journal entry would be to:

• A)debit Accounts receivable and credit Sales revenue.
• B)debit Sales revenue and credit Accounts receivable.
• C)debit Cash and credit Accounts receivable.
• D)debit Accounts receivable and credit Cash.

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Definitions:

Operating Activities

Day-to-day actions that are involved in running a business, such as selling products, managing expenses, and paying employees.

Accounts Receivables

Assets of a business representing money owed by customers for goods or services that have been delivered but not yet paid for.

Use of Funds

An explanation of how money will be spent, typically within a business or project framework.

Return on Equity

A measure of a company's profitability by revealing how much profit a company generates with the money shareholders have invested.