Question

An individual customer's accounts receivable is recorded in the customer's ______ account and then summarized with all other customers' accounts on the balance sheet as Accounts receivable.

Answer 1

An individual customer's account receivable is recorded in the customer's ledger account and then summarized with all other customers accounts on the balance sheet as accounts receivable.

Explanation:

The ledger account that provides a subsidiary ledger's account balances is called a control account. The subsidiary ledger collects the transaction data of individual creditors. The accounts received by the subsidiary ledger have a separate account for each customer who makes credit purchases.

The sum of the balances of the subsidiary ledger should equal the balance of related controlling account. it supports the controlling accounts in general ledger.

The balance sheet is the summary of current balances in the firm's Assets, liabilities, and equities accounts.

The common subsidiary ledges are accounts payable ledger, accounts receivable ledger, fixed assets ledger, inventory ledger and purchases ledger.