Question

Sky Co. collected $600 from one of its customers for payment on account. The journal entry would be:

a) Debit Accounts Receivable $600; Credit Cash $600
b) Debit Cash $600; Credit Accounts Receivable $600
c) Debit Cash $600; Credit Revenue $600
d) Debit Accounts Receivable $600; Credit Revenue $600

Answer 1

The correct journal entry for Sky Co. collecting $600 from a customer for payment on account would be Debit Accounts Receivable $600; Credit Cash $600.

Step-by-step explanation:

The correct journal entry for Sky Co. collecting $600 from a customer for payment on account would be:

a) Debit Accounts Receivable $600; Credit Cash $600

This entry acknowledges the increase in the Accounts Receivable account and the decrease in the Cash account, as the customer's payment is received.