Jupiter Service Company Decides to Increase the Amount of the Petty

question 135

True/False

Jupiter Service Company decides to increase the amount of the petty cash fund from $200 to $700.A journal entry must be made to debit the Cash account and credit the Petty Cash account for $500.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Credit Sales

Transactions where goods or services are sold and delivered, but payment is deferred to a later date, creating receivables for the seller.

Factors Receivables

The process of selling accounts receivable to a third party (factor) at a discount in exchange for immediate cash.