A buyer will receive a water bill for an estimated $30 at theend of the...

A buyer will receive a water bill for an estimated $30 at the end of the month. At closing, the seller has used an estimated $24 of the water. What should appear on the closing statement?

A) Credit the buyer for $24, debit the seller for $24
B) Credit the buyer for $6, debit the seller for $24
C) Credit the seller for $6, debit the buyer for $24
D) Credit the seller for $6, debit the buyer for $6

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Expert Solution

A buyer will receive a water bill for an estimated $30 at the end of the month. At closing, the seller has used an estimated $24 of the water. What should appear on the closing statement?

The buyer will be credited and the seller will be debited. The amount will be equal to the actual usage.

Buyer is required to pay to the Seller.

Seller will receive the amount thus debit.

Option A. Credit the buyer for $24, debit the seller for $24

Rahul Sunny answered 2 years ago

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