On July 31, ALOE Inc. received $5,000 cash from a customer who previously purchased ALOE's products on account. What entry should ALOE Inc. record at the time it receives cash?

A) Debit Accounts Receivable, $5,000; credit Cash, $5,000.

B) Debit Cash, $5,000; credit Accounts Receivable, $5,000.

C) Debit Cash, $5,000; credit Accounts Payable, $5,000.

D) Debit Cash, $5,000; credit Service Revenue, $5,000.

Answer: B