The entry to record collection of trade receivables under cash basis of accounting is *

debit to cash, credit to accounts receivable

debit to accounts receivable, credit to cash

debit to cash, credit to sales

debit to sales, credit to cash

Which statement is incorrect? *

Deferred income-beginning is added to the income received to compute for the income earned.

Accrued expenses-ending is added to the expenses paid to compute for the expenses incurred.

Prepaid expenses-beginning is added to the expenses paid to compute for the expenses incurred.

none of the above