Markus Company maintains a separate accounts receivable account for each customer.On June 18,Markus sells $6,400 services on account to customer Anthony and $1,000 services on account to customer Walker.How will these two transactions affect the control and subsidiary accounts?

Question

Quizplus · Accepted Answer

When Markus Company sells services on account to Anthony and Walker, the control account, Accounts Receivable, will be increased with a debit of $7,400. This is because the company is increasing the total amount owed to them by these customers. The individual customer accounts in the subsidiary ledger will also be increased with debits, as the amounts owed by each customer have increased. Therefore, option A is the correct choice. Options B, C, and D are incorrect because they do not accurately describe the effect of these transactions on the control and subsidiary accounts.

Markus Company Maintains a Separate Accounts Receivable Account for Each