Question

In July, Lane Co. sells merchandise to Avery Co. on account. In August, Avery pays the balance in full. The entry that Lane will make to record the receipt of cash will include a credit to the _______ account. Multiple choice question.
a. Accounts Receivable.
b. Cash.
c. Unearned Sales.
d. Accounts Payable.
e. Sales.

Answer 1

The entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

What is Accounts Receivable?

Accounts Receivable can be defined as the amount a company is expected to receive from their clients or customers for the goods and service they rendered to their clients.

Based on the information given the appropriate journal entry to record the transactions is:

Debit Cash

Credit Account receivable

(To record the receipt of cash)

Inconclusion the entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

Learn more about account receivable here:brainly.com/question/24848903