BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The correct answer is to debit Cash, since cash was received. Accounts Receivable should be CREDITED, since this asset is reduced when the company collects on its accounts receivable. (A debit to Accounts Receivable or any asset will increase the account balance.) There is no revenue in September.

Detailed explanation-2: -What Is a Back Charge? A back charge is a billing made to collect an expense incurred in a previous billing period. It can be due to lack of payment by the recipient of services or goods, an adjustment due to an error, or to collect an expense that was not billable until a later period due to timing issues.

Detailed explanation-3: -Answer and Explanation: The payment of cash increases the asset account Cash by $300 and the $200 of credit increases Accounts Receivable by $200.

Detailed explanation-4: -When cash is received from a customer on account, the corresponding amount is reduced from the accounts receivable account and added to the cash account. Since both of these accounts are current assets, there will be no change in the current assets and total assets.

Detailed explanation-5: -Whenever money is collected from a customer previously billed customer, the corresponding amount is credited to accounts receivable account. Moreover, same amount is also debited to the cash account. An increase in asset is recorded as a debit entry and a decrease in asset is recorded as a credit entry.