Final answer:
The correct double entry to record an invoice raised to a credit customer who is not expected to take advantage of an early settlement discount is Debit Receivables, Credit Revenue.
Step-by-step explanation:
The correct double entry to record an invoice raised to a credit customer who is not expected to take advantage of an early settlement discount is Option C: Debit Receivables, Credit Revenue.When a credit customer is billed, it increases the Accounts Receivable (an asset) with a debit entry, representing money owed to the business. At the same time, Revenue (an income account) is credited because the business has earned revenue by providing goods/services. There is no need to credit Payables or debit Payables for this transaction.For example, if the invoice amount is $1,000, the double entry will be:Debit Accounts Receivable $1,000 Credit Revenue $1,00.
The correct double entry to record an invoice raised to a credit customer who is not expected to take advantage of an early settlement discount is Debit Receivables, Credit Revenue. When a sale is made on credit, the customer's balance is increased (debited) to reflect the amount owed to the business. Meanwhile, revenue is credited to acknowledge the increase in income resulting from the sale. It is essential to ensure the accuracy of these entries to maintain proper financial records.