Question
X Company is a merchandiser and prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $51,000 increase in
X Company is a merchandiser and prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $51,000 increase in the Cash account and a $51,000 decrease in the Accounts Receivable account. Which of the following transactions is consistent with this entry?
X Company received $51,000 from a customer who had previously bought merchandise on account.
borrowed $51,000 from a bank and signed a note.
sold merchandise to customers on account for $51,000.
received $51,000 from a new investor. paid $51,000 to a supplier from whom the firm had previously bought merchandise on account.
received $51,000 from a customer who bought merchandise with cash.
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