What entry is required in the company's accounts to record outstanding checks? Select one: A. no entry required B. debit Cash; credit Accounts Receivable C. debit Cash; credit Accounts Payable D. debit Accounts Receivable; credit Cash

What entry is required in the company's accounts to record outstanding checks? Select one: A. no entry required B. debit Cash; credit Accounts Receivable C. debit Cash; credit Accounts Payable D. debit Accounts Receivable; credit Cash

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

What entry is required in the company's accounts to record outstanding checks?

Select one:

A. no entry required

B. debit Cash; credit Accounts Receivable

C. debit Cash; credit Accounts Payable

D. debit Accounts Receivable; credit Cash

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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