Which account is the controlling account for the amounts owed to individual creditors?
A) Accounts Payable in the general ledger
B) Accounts Receivable in the general ledger
C) Accounts Receivable in the subsidiary ledger
D) Accounts Payable in the subsidiary ledger

Question

Quizplus · Accepted Answer

Accounts Payable in the general ledger is the controlling account for the amounts owed to individual creditors. It summarizes the total amount owed to all creditors and is used to track and manage the company's outstanding obligations. Accounts Receivable in the general ledger and subsidiary ledger are used to track amounts owed to the company by customers. Accounts Payable in the subsidiary ledger tracks individual creditor balances, but it is not the controlling account.

Which Account Is the Controlling Account for the Amounts Owed