A business collects cash from a customer on settlement of ac

A business collects cash from a customer on settlement of accounts receivable. Which of the following accounts will be debited?

1-Cash

Solution

at the time of sale the jounal entry had done -

Accounts receivable A/c Dr.

To sale A/c

(Being sale on credit)

now when party gives you the whole payment then the journal entry would be done as follows -

Cash A/c Dr.

To Accounts receivable A/c

(Being Cash received)

so the correct answer should be option 1. Cash.

Please comment in case of further clarification.