An owner has deposited customer payments into the business's bank account. The appropriate entry is?

An owner has deposited customer payments into the business's bank account. The appropriate entry is?

• A. A Bank Deposit
• B. An Invoice
• C. A Bank Feed
• D. A Vendor Check Bank Feed

Answer: (A)

Recording cash receipts from customers as a deposit in the bank is the standard way to reflect money received and deposited. When customers pay, the business is receiving cash and the bank balance increases, so you record a debit to the Bank (cash) and a credit to the corresponding account that tracks the payment—typically Accounts Receivable (if you’re applying payment to a customer balance) or Revenue (for immediate cash sales). The term Bank Deposit is the correct entry because it specifically documents the inflow of cash being deposited into the business’s bank account. An invoice is something you issue to request payment, not what you record when money arrives. A bank feed is a tool that imports bank transactions into your accounting system, not the actual journal entry for the cash received. A vendor check bank feed pertains to vendor-related payments, not customer receipts.

Recording cash receipts from customers as a deposit in the bank is the standard way to reflect money received and deposited. When customers pay, the business is receiving cash and the bank balance increases, so you record a debit to the Bank (cash) and a credit to the corresponding account that tracks the payment—typically Accounts Receivable (if you’re applying payment to a customer balance) or Revenue (for immediate cash sales). The term Bank Deposit is the correct entry because it specifically documents the inflow of cash being deposited into the business’s bank account.

An invoice is something you issue to request payment, not what you record when money arrives. A bank feed is a tool that imports bank transactions into your accounting system, not the actual journal entry for the cash received. A vendor check bank feed pertains to vendor-related payments, not customer receipts.