A credit sale of $5. 275 to a customer would result in which of the following?

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A credit sale of $5,275 to a customer would result in which of
the following?

  • A debit to the Accounts Receivable account in the general ledger
    and a debit to the customer’s account in the accounts receivable
    subsidiary ledger.
  • A credit to the Accounts Receivable account in the general
    ledger and a credit to the customer’s account in the accounts
    receivable subsidiary ledger.
  • A debit to the Accounts Receivable account in the general ledger
    and a credit to the customer’s account in the accounts receivable
    subsidiary ledger.
  • A credit to the Accounts Receivable account in the general
    ledger and a debit to the customer’s account in the accounts
    receivable subsidiary ledger.
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Answer

Solution:

Correct Option is “A debit to the Accounts Receivable account in
the general ledger and a debit
to the customer’s account in the accounts receivable subsidiary
ledger”

Reason: This is because as the accounts
receivable subsidiary ledger will contain an account for each
individual customers. It provides detailed information about date,
credit memorandum, discounts, sales returns and allowances &
payment made to customers. So, it an explanation to accounts
receivable general ledger. Therefore, credit sales is debited both
in Accounts receivable general ledger and subsidiary ledger.

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