Questions: A corporate customer stopped by to check in for her reservation for four nights at Redwood Falls Inn. Kevin had already charged the whole amount for the customer's stay to the corporate account, but the customer wanted to pay a 275 deposit for the room. Which T-Account or T-Accounts correctly show how to record a deposit for a sale on account? a.) Revenue Debits Credits 275.00 b.) Accounts Receivable Debits Credits 275.00 c.) Accounts Receivable Cash Debits Credits Debits Credits 275.00 275.00

A corporate customer stopped by to check in for her reservation for four nights at Redwood Falls Inn. Kevin had already charged the whole amount for the customer's stay to the corporate account, but the customer wanted to pay a 275 deposit for the room.

Which T-Account or T-Accounts correctly show how to record a deposit for a sale on account?
a.)
 Revenue  
 Debits  Credits 
275.00  
  
  
  
  

b.)
 Accounts Receivable  
 Debits  Credits 
  275.00 
  
  
  

c.)
 Accounts Receivable  Cash  
 Debits  Credits  Debits  Credits 
275.00      275.00
Transcript text: A corporate customer stopped by to check in for her reservation for four nights at Redwood Falls Inn. Kevin had already charged the whole amount for the customer's stay to the corporate account, but the customer wanted to pay a $\$ 275$ deposit for the room. Which T-Account or T-Accounts correctly show how to record a deposit for a sale on account? a.) \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Revenue } \\ \hline Debits & Credits \\ \hline$\$ 275.00$ & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} b.) \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{\begin{tabular}{c} Accounts \\ Receivable \end{tabular}} \\ \hline Debits & Credits \\ \hline & $\$ 275.00$ \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} c.) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{\begin{tabular}{c} Accounts \\ Receivable \end{tabular}} & \multicolumn{3}{c|}{ Cash } \\ \hline Debits & Credits & Debits & Credits \\ \hline$\$ 275.00$ & & & $\$ 275.00$ \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}
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Solution

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Solution Steps

Step 1: Analyze the transaction

The customer is making a deposit of $275. This increases the cash account and decreases the accounts receivable.

Step 2: Identify the affected accounts

Cash (Asset) increases by $275. Accounts Receivable (Asset) decreases by $275.

Step 3: Apply debit and credit rules

Cash increases with a debit. Accounts Receivable decreases with a credit.

Final Answer:

c.) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{\begin{tabular}{c} Accounts \\ Receivable \end{tabular}} & \multicolumn{3}{c|}{ Cash } \\ \hline Debits & Credits & Debits & Credits \\ \hline$\$ 275.00$ & & & $\$ 275.00$ \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Cash Debits $275.00

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