Which account would be decreased with a credit Accounts Rece

Which account would be decreased with a credit?

Accounts Receivable

Common Stock

Notes Payable

Sales

Solution

The correct option is Accounts receivable.

Accounts receivable is a current asset and hence a credit would mean a decrease in balances of accounts receivable.One of the reasons of such a decrease could be receipt of cash against accounts receivable etc.

Common stock(part of stockholders equity) and notes payable(current liability) increase with credit while sales will increase with credit increasing net income for the company.