Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following transactions is recorded with a credit to Accounts Receivable?

Issuance of an invoice to a customer

Sale of goods on credit to a customer

Collection of cash from a customer on account

Adjustment for bad debts expense

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Verified step by step guidance

Understand the nature of Accounts Receivable: Accounts Receivable represents amounts owed to the company by customers for goods or services provided on credit. A credit to Accounts Receivable reduces the balance in this account.

Analyze the transaction 'Issuance of an invoice to a customer': When an invoice is issued, it increases Accounts Receivable (debit) and increases Revenue (credit). This does not involve a credit to Accounts Receivable.

Analyze the transaction 'Sale of goods on credit to a customer': A sale on credit increases Accounts Receivable (debit) and increases Revenue (credit). This also does not involve a credit to Accounts Receivable.

Analyze the transaction 'Collection of cash from a customer on account': When cash is collected from a customer, it decreases Accounts Receivable (credit) and increases Cash (debit). This transaction involves a credit to Accounts Receivable.

Analyze the transaction 'Adjustment for bad debts expense': Adjusting for bad debts involves recognizing an expense (debit to Bad Debts Expense) and reducing Accounts Receivable or increasing Allowance for Doubtful Accounts (credit). While this may involve a credit to Accounts Receivable, it is not related to cash collection.