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Clean123 Inc. performs $1,000 of cleaning services for a customer. After 30 days, the customer pays 50% of the involce with a check. How will
this transaction be recorded?
The customer's payment will be recorded as a debit to(blank)
and a credit to Accounts Receivable.

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Answer:

  • Debit to Cash
  • Credit to Accounts Receivable

Explanation:

When a Receivable pays their bill, the cash account will be debited to show that cash has come into the company because cash is an asset account and assets are debited when they increase.

Accounts Receivable is an asset account as well and when the Receivable pays, they are reducing the amount that they owe(as is the case here) so their account needs to be reduced. Assets are credited when they reduce so this will be credited.

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