Question

X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $51,000 increase in Cash and a $51,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company

received $51,000 from a new investor.
borrowed $51,000 from a bank and signed a note.
received $51,000 from a customer who had previously bought merchandise on account.
sold merchandise to customers on account for $51,000.
received $51,000 from a customer who bought merchandise with cash.
paid $51,000 to a supplier from whom the firm had previously bought merchandise on account.

Answer 1

Jounal Enrty will be as

Cash A/c Dr 51000

To Accounts receivables A/c 51000

So the Anwer is received $51,000 from a customer who had previously bought merchandise on account.

why others are wrong :

Accounts Receivables arenot investors

When its borrowed from bank then there is an increase in bank, not in cash

sold merchandise to customers on account for $51,000 is the transaction of sale,not account recievables

received $51,000 from a customer who bought merchandise with cash will have no effect on account recievables

paid $51,000 to a supplier is decrease in cash