A Credit Sale of $2,500 to a Customer Would Result

question 44

Multiple Choice

A credit sale of $2,500 to a customer would result in

• A) A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the Accounts Receivable Ledger
• B) A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the Accounts Receivable Ledger
• C) A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the Accounts Receivable Ledger
• D) A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the Accounts Receivable Ledger
• E) A credit to Sales and a credit to the customer's account in the Accounts Receivable Ledger

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Definitions:

Endorser

A person who signs a negotiable instrument on the back to transfer ownership or to guarantee payment to someone else.

Secondarily Liable

Refers to the obligation to pay a debt or fulfill an obligation only if the primary party responsible fails to do so.

Drawer

The party that writes or creates a bill of exchange, such as a check, commanding a payment to be made to a specified person or entity.

Secondarily Liable

Responsibility or liability that kicks in when the primarily responsible party fails to fulfill their obligations.