Chapter 7, Problem 8QS

To determine

Accounts Receivable Subsidiary Ledger:

A subsidiary ledger of accounts receivable shows the amount of money owed by debtors individually.

Accounts Receivable – General Ledger:

The general ledger of accounts receivable shows the balance of accounts receivable collectively.

To determine:

1. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to subsidiary ledger.

2. Open Accounts Receivable controlling T-accounts and a Sales T-account to reflect general ledger accounts. Post the end-of-month total from the sales journals to these accounts.

3. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.