Quick Quiz A customer owed the business $1,500. The customer paid the full amount directly into the bank account.
Which double entry is correct?
A) Dr Trade Receivables $1,500; Cr Bank $1,500
B) Dr Bank $1,500; Cr Revenue $1,500
C) Dr Bank $1,500; Cr Trade Receivables $1,500
D) Dr Cash $1,500; Cr Revenue $1,500
Think it through before scrolling... 👇
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✅ Answer: C — Dr Bank $1,500; Cr Trade Receivables $1,500
The business receives cash in the bank, so Bank is debited. The customer no longer owes the business, so Trade Receivables are credited.
Revenue is not recognised because it was recorded when the sale was originally made.
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