An account receivable account consists of: a) one part. b) two parts. c) three parts. d) four...

Question:

An account receivable account consists of:

a) one part.

b) two parts.

c) three parts.

d) four parts.

Accounts Receivable:

Accounts Receivable is the second account under the Assets section of the Balance Sheet. This account is being used to record customer's balances due to Sales on credit or on account. This type of account has a normal debit balance and it has Sales or Revenue account as credit. Accounts Receivable account is being reduced to its net realizable value by deducting the Allowance for Doubtful Accounts.

Answer and Explanation:

The correct answer is a) one part.

Accounts Receivable has only one part. This account records all transactions that is from sales or service on account or credit sales or service. The usual entry to record Credit Sales is debit Accounts Receivable and credit Sales or Service Revenue.


Learn more about this topic:

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Accounts Receivable: Definition, Process & Examples

from Accounting 101: Financial Accounting

Chapter 7 / Lesson 1
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