Asked by Sarah' Kay Belue on Jun 14, 2024
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Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.
Accounts Receivable Subsidiary Ledger
A detailed record showing the individual transactions and balances for customers who owe the company money, supporting the summary balances shown in the general ledger.
Controlling Account
An account in the general ledger that summarizes the total balances of all individual accounts in a subsidiary ledger.
- Acquire knowledge about the objective and mechanism of the accounts receivable subsidiary ledger within the realm of accounting.
- Determine and elucidate the connection between the controlling account and the subsidiary ledger.
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Allyssa DaytonJun 17, 2024
Final Answer :
Accounts receivable subsidiary ledger is a group of accounts that contains, in alphabetical order, the individual records of amounts owed by various credit customers. Daily postings are made to the customers' accounts updating the current balances.
Accounts Receivable controlling account, located in the general ledger, shows a company the total amount of money owed to it. Monthly postings are made to the account.
Both the accounts receivable subsidiary ledger and the controlling account, Accounts Receivable, are reconciled at the end of the month by preparing a schedule of accounts receivable.
Accounts Receivable controlling account, located in the general ledger, shows a company the total amount of money owed to it. Monthly postings are made to the account.
Both the accounts receivable subsidiary ledger and the controlling account, Accounts Receivable, are reconciled at the end of the month by preparing a schedule of accounts receivable.
Learning Objectives
- Acquire knowledge about the objective and mechanism of the accounts receivable subsidiary ledger within the realm of accounting.
- Determine and elucidate the connection between the controlling account and the subsidiary ledger.
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