Select the Entry That Correctly Records the Receipt by Speedy

Multiple Choice

Select the entry that correctly records the receipt by Speedy Window Cleaning of $770 (including GST) collected from its customer Alan Lim for goods previously sold to him on credit.

A) Debit bank $770; credit income earned $700; credit GST collections $70
B) Debit debtors $770; credit income earned $700; credit GST collections $70
C) Debit debtors $770; credit bank $770
D) Debit bank $770; credit debtors $770