A Company Received $75,000 from a Customer "On Account

question 116

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

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Definitions:

Buyer's Bank

The financial institution that processes payments on behalf of a buyer, especially in international trade transactions.

Agreed-on Amount

A specific sum of money that has been mutually consented to by the parties involved in a transaction or contract.

International Purchasing Offices

Entities established by companies in foreign countries to facilitate the sourcing and procurement of goods and services.

Geographic Region

An area defined by natural or artificial features that distinguish it from other areas, which can affect market strategies and operations.