When a $100 customer payment is recorded in QuickBooks Online, which account would be debited for $100 in the Transaction Journal?

When a $100 customer payment is recorded in QuickBooks Online, which account would be debited for $100 in the Transaction Journal?

• A. Revenue
• B. Business bank account
• C. Expenses
• D. Accounts receivable

Answer: (B)

When you record a customer payment, you’re increasing your cash balance and reducing what the customer owes. That means the bank (cash) account is debited, because assets rise with a debit, while Accounts Receivable is credited to decrease the amount owed. Revenue and Expenses aren’t affected by simply receiving a payment against an invoice—revenue was recognized when the sale occurred, and expenses aren’t involved in clearing a receivable. In the Transaction Journal, you’d see a debit to the business bank account for the $100 and a corresponding credit to Accounts Receivable for the same amount.

When you record a customer payment, you’re increasing your cash balance and reducing what the customer owes. That means the bank (cash) account is debited, because assets rise with a debit, while Accounts Receivable is credited to decrease the amount owed. Revenue and Expenses aren’t affected by simply receiving a payment against an invoice—revenue was recognized when the sale occurred, and expenses aren’t involved in clearing a receivable. In the Transaction Journal, you’d see a debit to the business bank account for the $100 and a corresponding credit to Accounts Receivable for the same amount.