At the end of the previous year, a customer owed Days Company $400. On February 1 of the current year, the customer paid $600 total, which included the $400 owed plus $200 owed through February 1st. The journal entry on February 1 is? (Check all that apply.)

The relevant journal entry would be:

Date                    Account Title                                           Debit            Credit

February 1          Cash                                                       $600

                          Accounts Receivable                                                   $400

                           Revenue                                                                       $200

The entire $600 will be debited to cash to show that $600 was received in cash.

$400 will go to Accounts Receivable to cancel out the debt owed by the customer.

Revenue will be credited $200 for the amount owed through February 1st. Revenue is credited when it increases.

answer/// product differentiation;