Section 4. Assets
Q18. Accounts receivable
Entity A collected $9,300 in cash from accounts receivable.
Prepare a journal entry to record this transaction.
A18. When accounts receivable is collected, a decrease in accounts receivable is recorded on the credit side.
| Debit | Credit | |
| Cash | 9,300 | |
| Accounts receivable | 9,300 |
[Note]
1. Increase in cash (asset): debit
2. Decrease in accounts receivable (asset): credit
[Exercise]
Entity B collected $14,200 in cash from accounts receivable.
| Debit | Credit | |
| Cash | 14,200 | |
| Accounts receivable | 14,200 |
[Note]
1. Increase in cash (asset): debit
2. Decrease in accounts receivable (asset): credit