If the individual subsidiary ledger accounts of Accounts Receivable and Accounts Payable contained the following data: Cadence Company - Vendor - $250 credit balance
Franklin Enterprises - Customer - $750 debit balance
Marcelo Construction - Client - $125 - debit balance
Peyton Supplies - Supplier - $375 - credit balance
The Accounts Receivable (A/R) controlling account and the Accounts Payable (A/P) controlling account balances would be:
A) A/R - $1,000, A/P - $500
B) A/R - $625, A/P - $875
C) A/R - $875, A/P - $625
D) A/R - $750, A/P - $750

Question

Quizplus · Accepted Answer

To find the A/R controlling account balance, we add up the debit balances and subtract the credit balances: 
$750 (Franklin Enterprises) + $125 (Marcelo Construction) = $875 
To find the A/P controlling account balance, we add up the credit balances and subtract the debit balances: 
$250 (Cadence Company) + $375 (Peyton Supplies) = $625 
Therefore, the correct answer is C.

If the Individual Subsidiary Ledger Accounts of Accounts Receivable and Accounts