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.
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.
