At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this? (Check all that apply.)

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Popcorn

11 March, 15:46

At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this? (Check all that apply.)

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Koen · Answer 1

At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this

Dr. Cash ... 900

Cr Purchases ... 400

Cr Accounts Receivables ... 500

Being settlement of Accounts receivable of $500 and a payment for current month purchase of $400

The $500 will be an accounts receivables at the end of the previous year while the $400 is current month purchase. Both of these accounts will be credited while cash will be debited to demonstrate the receipts