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What are the bookkeeping entries involved in the transaction involving the following information;?

1.Company X owes us $,

2. Company X has to collect $, from us.

On this day, the Company X decides to make a final settlement by cash.

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Question added by Chick Leslie , Storekeeper , MODULAR GENERAL CONTRACTING LLC
Date Posted: 2019/04/12
Chick Leslie
by Chick Leslie , Storekeeper , MODULAR GENERAL CONTRACTING LLC

DR CASH $100,000

DR PAYABLES $ 80,000

 CR RECEIVABLES $ 100,000

 CR CASH $80,000

This is to assume we actually received an amount of 100,000 and paid 80,000 to the customer. Thus, we have an increase of 20,000 in the cash account.

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