Question

During the year, Amrerk Inc. recorded sales revenue of $200,000. The balance in accounts receivable increased by $4,000. The amount of cash received from customers can be derived by preparing a journal entry that includes:

Answer 1

Answer: Sales, receivables and Cash

Explanation: The amount of cash received from customers can be derived by preparing a journal entry that includes: sales, receivables and bank

Sales: sales is the actual exchange of product/service for cash. sometime, sales can be cash sales or credit sales.

for cash sales: Debit: Bank/Cash and Credit: Sales

for credit sales: Debit: Receivable account and Credit Sales

Receivable Account: This is an account were sales on credit(sales made without cash payment) are recorded until the debt is paid.

here, we Debit: Cash/Bank and Credit: receivable account

Cash: this is an account maintained for cash received from sales or from debtors. when cash is received: Debit Cash and credit account receivable /sales account.