Cash received from debtor is recorded in which of the following SPECIALIZED journals?

Correct answer: C. Cash receipts

  • A. Purchase journal
  • B. Sales journal
  • C. Cash receipts
  • D. Cash payments journalChoose Bookkeeping Software

Explanation

Money received from a debtor is entered in the cash receipts journal because the business receives cash against an outstanding receivable. The cash payments journal is used for money paid out, not collected.

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About Accounting Principles

Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

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