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8 July, 00:12

When a sale is made to a customer who pays with a check, the company records: Multiple Choice No entry until the check clears the bank. A debit to Accounts Payable. A debit to Accounts Receivable. A debit to Cash.

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  1. 8 July, 04:08
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    A debit to Cash

    Explanation:

    When a sale is made to a customer who pays with a check, the company records: A debit to Cash.

    The entry has nothing to do with accounts payable. It is a transaction between cash and accounts receivable.

    Notice that the journal entry will be

    Dr. Cash

    Cr. Accounts receivable

    The bank is not yet debited until the check is lodged and if it returns dishonored you reverse the above journal entry by

    Dr. Accounts receivable

    Cr. Cash

    To show that the amount is not yet paid.
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