Assume that a company has only four customers: A, B, C, and D. The accounts receivable balance in the general ledger is $7,983 and the accounts receivable subsidiary ledger of customers A, C, and D have $1,246, $2,596 and $3,240 respectively. Calculate the amount in the accounts receivable subsidiary ledger account of customer B.
A)$7,082
B)$2,147
C)$1,391
D)$901

Question

Quizplus · Accepted Answer

Total amount in the subsidiary ledgers of customers A, C, and D is $1,246 + $2,596 + $3,240 = $7,082, which is the amount that should agree with the total balance in the general ledger. $7,982 - $7,082 = $900, which is the amount that should be in the subsidiary ledger account of customer B. However, we need to add a credit balance from customer B's account to arrive at the correct amount. Therefore, the amount in the accounts receivable subsidiary ledger account of customer B is $900 + $1 = $901. Hence, the correct answer is D.

Assume That a Company Has Only Four Customers: A, B