Question

intext:"Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to record this transaction would include a"

Answer 1

Answer:

Debit Cash account       $700

Credit Accounts receivable   $700

Explanation:

When revenue is earned but cash is yet to be received,

Debit Accounts receivable

Credit Revenue account

When cash is received,

Debit Cash account  

Credit Accounts receivable.

As such, when a company received $700 from a customer previously billed for services performed,

Debit Cash account  

Credit Accounts receivable