Individual stock records for a retail company are maintained in a:
A) control account.
B) subsidiary ledger.
C) special journal for inventory.
D) manual accounting system.

Question

Quizplus · Accepted Answer

Individual stock records for a retail company are likely to be numerous, and it is easier to maintain them in a subsidiary ledger. A subsidiary ledger is a detailed record for a single account that summarizes information from the general ledger in a more detailed form. For example, to maintain records for each customer, a company can create a subsidiary ledger for accounts receivable. In this ledger, each customer has an individual record that shows all the transactions over a period, such as purchases and payments. Similarly, for stock records, creating a subsidiary ledger would allow the company to maintain detailed records for each item in stock. This would help in tracking inventory levels, sales, and losses due to theft or damages.

Individual Stock Records for a Retail Company Are Maintained in A