Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 35)
A customer pays a credit balance. What is the journal entry?
Debit Cash, Credit Sales.
Debit Accounts Receivable, Credit Cash.
Debit Cash, Credit Accounts Receivable.
Debit Sales, Credit Cash.
Explanation
Cash is received, so it is debited. The customer owes less, and thus Accounts Receivable is credited.
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