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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Business

Marcus Wu

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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Answers (1)

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Odin Bentley · Answer 1

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.