Assets



Section 4. Assets

Q18. Accounts receivable
Entity A collected $9,300 in cash from accounts receivable.
Prepare a journal entry to record this transaction.

A18. When accounts receivable is collected, a decrease in accounts receivable is recorded on the credit side.

  Debit Credit
Cash 9,300  
     Accounts receivable   9,300

[Note]
1. Increase in cash (asset): debit
2. Decrease in accounts receivable (asset): credit

[Exercise]
Entity B collected $14,200 in cash from accounts receivable.

  Debit Credit
Cash 14,200  
     Accounts receivable   14,200

[Note]
1. Increase in cash (asset): debit
2. Decrease in accounts receivable (asset): credit

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