What Is The Journal Entry To Record A Payment On An Invoice From A Customer

Cash Received / Collected From Customer Journal Entry Or Cheque / Check Received From Customer Journal Entry For Unpaid Invoices / Customer Paid Invoice By Cash Or Check For Services Rendered

 

When the company Billed Customer / Client For Goods / Merchandise Sold Or Service Earned, then the customer sent the payment to company / corporation. The customer made cash payment or paid through check / cheque.

The entry to record for cash received or check received from customer is shown below:

                                                                Cash a/c  XXX

 

                                                                                      Accounts Receivable a/c  XXX

 

                                                               (Cash / Check Received From Customer)

The Cash Account is increased as we collect it from customer, so we debit it while Accounts Receivable Account is decreased as unapaid invoice is cleared and the customer is no longer remained to be our accounts receivable / debtor, so we credit it.

Cash account as a Current Asset is shown on Balance Sheet while accounts receivable is also a current asset and shown on balance sheet.