At the end of the month the accountant for Sequoia Company prepared a schedule of accounts receivable from the accounts receivable subsidiary ledger. Its total did not agree with the balance in the Accounts Receivable control account in the general ledger. Briefly describe the procedure that should be followed in reconciling the two balances.

The first step would be to go back and double check the total of the accounts receivable subsidiary ledger. There may have been a math error which caused the total to be incorrect. If the math is accurate then the next step would be to review the postings in the accounts receivable control account. This review includes checking both the accuracy of the math and the accuracy of the posting from the journals. If the control account is correct then the next step is to repeat the procedure with each individual subsidiary account. If the error still has not been found then the final step is to look at the journals to see if there were any entries that failed to get recorded.