Which of the Following Is Recorded by a Credit to Accounts

question 100

Multiple Choice

Which of the following is recorded by a credit to Accounts Receivable?

• A)Sale of inventory on account.
• B)Estimating the annual allowance for uncollectible accounts.
• C)Estimating annual sales returns.
• D)Write-offs of bad debts.

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Definitions:

Posting

The process of transferring information from the journal to individual accounts in the ledger, which helps in preparing financial statements.

Journal

A book or digital record where all financial transactions of a business are initially recorded before being transferred to specific accounts in the ledger.

Ledger Accounts

Reflects a record of all the financial transactions made by a company, summarized into different categories for reporting purposes.

Accounts Receivable

Amounts owed by customers to an enterprise for goods or services that have been dispatched but not yet reimbursed.