Question

Adidea Corp. received $4,000 cash for merchandise sold, $1,200 cash for an accounts receivable payment, and $500 cash for a loan payment. How would the company record these transactions in its cash receipt journal?

Answer 1

Adidea Corp. would record the cash receipts in its cash receipt journal by debiting the Cash account and crediting the respective revenue or payable accounts.

Step-by-step explanation:

Adidea Corp. would record these transactions in its cash receipt journal as follows:

• The $4,000 cash received for merchandise sold would be recorded as a debit to the Cash account and a credit to the Sales Revenue account.
• The $1,200 cash received for an accounts receivable payment would be recorded as a debit to the Cash account and a credit to the Accounts Receivable account.
• The $500 cash received for a loan payment would be recorded as a debit to the Cash account and a credit to the Loan Payable account.

Answer 2

Cash Dr 5700
To sales revenue 4000
To accounts receivable 1200
To loan payable 500