Alltech Company maintains a separate accounts receivable account for each customer. On June 18, Alltech provides $6100 of services on account to customer Anthony and $1000 of services on account to customer Walker. How will these two transactions affect the control and subsidiary accounts?
A) The control account, Accounts Receivable, will be increased with a debit of $7100.
B) The individual customer accounts in the subsidiary ledger will be increased with credits.
C) After posting these transactions, the sum of the balances in subsidiary accounts receivable will not equal the control account balance.
D) The control account will have a debit balance and the subsidiary accounts will have a credit balance. This keeps the accounting equation in balance.
A) The control account, Accounts Receivable, will be increased with a debit of $7100.
You might also like to view...
Reviewing capital budgets and comparing the amounts spent with amounts budgeted is an example of a substantive analytical procedure for auditing prepaid accounts.
Answer the following statement true (T) or false (F)
The total of all columns of the cash receipts journal should be posted daily
Indicate whether the statement is true or false
If reversing entries are not made, it is necessary to keep track of which jobs had partial overhead application from a prior year's adjustment
Indicate whether the statement is true or false
Which of the following statements best represents when an organization can begin to focus on its discretionary or philanthropic responsibilities?
A. An organization should pursue discretionary responsibility even when it is not meeting its economic requirements. B. An organization should pursue discretionary responsibility after it meets its economic, legal, and ethical responsibilities. C. An organization should pursue discretionary responsibility as long as it is meeting its economic requirements. D. An organization should pursue discretionary responsibility above legal responsibility.