Which of the following is true of an accounts receivable subsidiary ledger?
A)It does not include a receivable account for each customer, but includes a cumulative account for all customers.
B)It contains information about the amount each customer purchased on credit, but excludes the customer name.
C)The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger.
D)Companies keep an accounts payable subsidiary ledger that is entirely different than the accounts receivable subsidiary ledger.

Question

Quizplus · Accepted Answer

The purpose of the accounts receivable subsidiary ledger is to provide detailed information about the amount that each customer owes. Therefore, it should include a separate account for each customer. The total of the accounts in the accounts receivable subsidiary ledger should equal the accounts receivable balance in the general ledger to ensure accuracy in the accounting records. Option A and B are incorrect as they do not reflect the purpose of the accounts receivable subsidiary ledger. Option D is incorrect as it is irrelevant to the question about the accounts receivable subsidiary ledger.

Which of the Following Is True of an Accounts Receivable