The total of the individual account balances in the accounts receivable master file equals the:
A) balance of the sales account in the general ledger.
B) balance of the accounts receivable account in the general ledger.
C) total sales less the total cash received for the period.
D) total sales for the period.

Question

Quizplus · Accepted Answer

The balance of the accounts receivable account in the general ledger should equal the total of the individual account balances in the accounts receivable master file. This is because the accounts receivable account in the general ledger represents the total amount owed by customers to the company, while the accounts receivable master file lists the individual customer balances. Options A, C, and D are not correct because they do not reflect the relationship between the accounts receivable master file and the general ledger accounts for accounts receivable.

The Total of the Individual Account Balances in the Accounts