Multiple choice

When cash is received on account, the amount is recorded in the

  1. Sales Credit column and Cash Debit column

  2. General Debit column and Cash Credit column

  3. Accounts Receivable Credit column and Cash Debit column.

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

Receiving cash on account reduces an asset (Accounts Receivable) and increases another asset (Cash). This is recorded by debiting Cash and crediting Accounts Receivable.

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