Final answer:
Billing the customer is the activity that results in the creation of an account receivable as it involves invoicing the customer for goods or services provided on credit, awaiting payment. The correct option is c.
Step-by-step explanation:
The creation of an account receivable is an important event in a company's sales and collection process. Among the activities listed, one leads directly to the establishment of an account receivable:
- Receiving a sales order from a customer does not result in an account receivable; it is simply a request for goods or services.
- Shipping ordered products to the customer often triggers the recognition of revenue, but alone it doesn't create an account receivable.
- Billing the customer is the activity that creates an account receivable because it entails issuing an invoice to the customer for goods or services provided on credit terms, awaiting payment.
- Recording payment from the customer does not create an account receivable; instead, it settles an existing one.
Therefore, the correct answer is c. Billing the customer. The correct option is c.