A business maintains subsidiary accounts for each of its customers.On May 15,the business provides services on account: $1,900 to customer J.Anthony ;$4,900 to customer A.Martin;and $1,300 to customer S.Lee.Which journal entry is needed to record these transactions?

Question

Quizplus · Accepted Answer

Journal entry B correctly records the transaction by debiting accounts receivable for the total amount of services provided on account ($7,100) and crediting subsidiary accounts for each individual customer: J.Anthony, A.Martin, and S.Lee. This accurately reflects the specific amounts owed by each customer and updates the accounts receivable balance for the business.

A Business Maintains Subsidiary Accounts for Each of Its Customers