Final answer:
The correct journal entry is Debit Cash and Credit Accounts Receivable for $6,000. This reflects the cash payment received from customers. The firm's accounting profit is $50,000, calculated by subtracting total explicit costs from total revenues.
Step-by-step explanation:
The journal entry to record a business receiving $6,000 from customers paying on their accounts is: c Debit Cash, $6,000; Credit Accounts Receivable, $6,000. This entry shows that the business is increasing its cash balance because customers are paying off their outstanding balances, which decreases the Accounts Receivable balance correspondingly.
Accounting Profit Calculation
The firm's accounting profit is calculated by subtracting explicit costs from total revenues. In the provided example, the firm had sales revenue of $1 million and its explicit costs included $600,000 on labor, $150,000 on capital, and $200,000 on materials. Therefore, the accounting profit for the firm would be $50,000, which is derived from $1,000,000 - ($600,000 + $150,000 + $200,000).