multiple choice\nwhat happens to the accounts receivable account when cash is received from sam erickson on…
multiple choice\nwhat happens to the accounts receivable account when cash is received from sam erickson on april 18th?\nthis question is worth 1 point(s)\nit is debited because the balance is decreasing\nit is credited because the balance is decreasing\nit is credited because the balance is increasing\nit is debited because the balance is increasing
Answer
Brief Explanations:
Accounts Receivable is an asset account. When cash is received from a customer (Sam Erickson in this case), the amount owed to the company (Accounts Receivable) decreases. In accounting, for asset accounts, a decrease is recorded as a credit.
Answer:
It is credited because the balance is decreasing.