The accounts receivable ledger:
A)Is a substitute for the sales journal.
B)Stores transaction data for individual customers.
C)Stores transaction data for individual creditors.
D)Is a substitute for the cash receipts journal.
E)Is also the controlling account.

Question

Quizplus · Accepted Answer

The accounts receivable ledger stores transaction data for individual customers, which allows for tracking of amounts owed and payment history for each customer. It is not a substitute for the sales journal, cash receipts journal, or accounts payable ledger. It is also the controlling account for accounts receivable, meaning it summarizes the balance owed by all customers and is used to reconcile the subsidiary ledger with the general ledger.

The Accounts Receivable Ledger