In the accounts receivable subsidiary ledger the length of time the account has been due can be useful to the client and the auditor in preparing the:
A)trial balance.
B)working trial balance.
C)accounts receivable trial balance.
D)aged accounts receivable trial balance.

Question

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The length of time the account has been due is necessary to prepare an aged accounts receivable trial balance. This report categorizes accounts receivable by the length of time they have been outstanding. It helps to spot accounts that are slow to pay or possibly uncollectible. Therefore, this report is useful for both the client and the auditor.

In the Accounts Receivable Subsidiary Ledger the Length of Time