Question

On March 29, customers who owe $13,981 on account to Sonic Sales Company submit payments of $7,687. Required: Journalize this event. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Answer:

Debit Cash accounts $7,687

Credit accounts receivables  $7,687

Being entries to record cash receipt from customer.

Explanation:

When customers purchase on account, the entries required are credit sales and debit accounts receivables.

When cash is paid, Debit cash account and credit accounts receivables with the amount paid. This has a net effect on account receivables and so the balance in the account is reduced.