X Company is a merchandiser and prepares monthly financial statements. On Septem
ID: 2598043 • Letter: X
Question
X Company is a merchandiser and prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $48,000 increase in the Cash account and a $48,000 decrease in the Accounts Receivable account. Which of the following transactions is consistent with this entry? X Company
A. received $48,000 from a customer who had previously bought merchandise on account.
B.borrowed $48,000 from a bank and signed a note.
C. sold merchandise to customers on account for $48,000.
D.paid $48,000 to a supplier from whom the firm had previously bought merchandise on account.
E.received $48,000 from a new investor.
F. received $48,000 from a customer who bought merchandise with cash.
Explanation / Answer
On September 6, its accountant made an entry that resulted in a $48,000 increase in the Cash account and a $48,000 decrease in the Accounts Receivable account Means cash received from customer $48000
so answer is :
A. received $48,000 from a customer who had previously bought merchandise on account.
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