Final answer:
Accounts receivable is directly affected when a customer purchases goods on credit and when they return goods bought on credit. Other transactions like bad debt expense and customer defaults involve allowance accounts related to receivables rather than the accounts receivable account itself.
Step-by-step explanation:
The transactions that require an entry to the accounts receivable account are when a customer purchases goods on account and when sales on account are returned by a customer. Specifically, the accounts receivable account is used to record sales made on credit. Here's a brief description of each scenario:
- Customer purchases goods on account: When a company sells goods or services and allows the customer to pay at a future date, this transaction increases the accounts receivable balance, meaning the company is owed money by the customer.
- Bad debt expenses are recorded: This typically involves an adjustment to accounts receivable via allowance for doubtful accounts, not a direct transaction in the accounts receivable account itself.
- Customer requests warranty service: This is generally an expense related to warranty service and does not directly affect accounts receivable.
- Customer defaults and does not pay: Similar to bad debt, this would affect the allowance for doubtful accounts and not directly the accounts receivable account. If the debt is written off, it then would affect accounts receivable.
- Sales on account is returned by a customer: This transaction will involve a credit to accounts receivable, as the return means the customer no longer owes the company for the returned goods.
To summarize, the primary transactions that require a direct entry into the accounts receivable account are when a customer buys on credit and when a customer returns goods previously bought on credit.