The Accounts Receivable Subsidiary ledger is a:O a separate ledger maintaining the details affecting individual vendor accountsa separate ledger maintaining the details affecting individual customer accountsO controlling accountO never used in a manual accounting systemThe accrual of interest on December 31, 2008 for a note receivable dated December 15, 2008 would require the following adjusting jeO debit Interest Receivable, credit Interest Incomedebit Interest Income, credit Interest Receivabledebit Inrerest Payable; credit Interest ExpenseO debit Interest expense; credit Interest PayableAThe allowance for uncollectible accounts is necessary becauseO a liability results when a credit sale is madeO when recording uncollectible accounts expense, it is not possible to predict specifically which accounts will not be colmanagement should know how many credit losses have been sustained over the years.Ouncollected accounts that are written off must be accumulated in a separate account.

Introduction:- A subsidiary ledger is a detailed list to support a control account. It appears on…

The Accounts Receivable Subsidiary ledger is a: O a separate ledger maintaining the details affecting individual vendor accounts O a separate ledger maintaining the details affecting individual customer accounts O controlling account

The Accounts Receivable Subsidiary ledger is a: O a separate ledger maintaining the details affecting individual vendor accounts O a separate ledger maintaining the details affecting individual customer accounts O controlling account

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1KTQ

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The Accounts Receivable Subsidiary ledger is a:
O a separate ledger maintaining the details affecting individual vendor accounts
a separate ledger maintaining the details affecting individual customer accounts
O controlling account
O never used in a manual accounting system
The accrual of interest on December 31, 2008 for a note receivable dated December 15, 2008 would require the following adjusting je
O debit Interest Receivable, credit Interest Income
debit Interest Income, credit Interest Receivable
debit Inrerest Payable; credit Interest Expense
O debit Interest expense; credit Interest Payable
A
The allowance for uncollectible accounts is necessary because
O a liability results when a credit sale is made
O when recording uncollectible accounts expense, it is not possible to predict specifically which accounts will not be col
management should know how many credit losses have been sustained over the years.
O
uncollected accounts that are written off must be accumulated in a separate account.

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