[Q1] The entity collected $9,000 from a customer who purchased the entity’s merchandise on account 10 days ago.
Prepare a journal entry to record this transaction.
[Journal Entry]
| Debit | Credit | |
| Cah | 9,000 | |
| Accounts receivable | 9,000 |
[Notes]
Debit: Increase in cash
Credit: Decrease in accounts receivable
Collection of accounts receivable decreases the balance of accounts receivable.