The total of all balances in the accounts receivable subsidiary ledger should equal the balance of the:
A)accounts receivable account in the general ledger.
B)cash account in the general ledger.
C)accounts payable account in the general ledger.
D)sales revenue account in the general ledger.

Question

Quizplus · Accepted Answer

The accounts receivable subsidiary ledger contains individual customer accounts and their respective balances, while the accounts receivable account in the general ledger represents the total amount owed to the company by customers. Therefore, the total of all balances in the accounts receivable subsidiary ledger should equal the balance of the accounts receivable account in the general ledger, as they both represent the same amount of money owed to the company by customers. The other options (B, C, and D) are unrelated to accounts receivable and therefore do not impact the balance of the accounts receivable subsidiary ledger.

The Total of All Balances in the Accounts Receivable Subsidiary