Multiple choice

When services are sold on account, the amount is recorded in the

  1. Accounts Receivable Debit column and Cash Credit column.

  2. General Credit column and Cash Debit column

  3. Accounts Receivable Debit column and Sales Credit column

  4. General Debit column and Accounts Payable Debit column.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Selling services on account increases an asset (Accounts Receivable) and increases revenue (Sales). This is recorded by debiting Accounts Receivable and crediting Sales.

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