Z Company uses a subsidiary ledger and control account system for its accounts receivable.At the end of the accounting period a listing of customers' accounts is prepared from the subsidiary ledger.The purpose of this listing is to:

Question

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The purpose of preparing a listing of customers' accounts from the subsidiary ledger is to prove that the subsidiary ledger agrees with the control account. This is important for ensuring that the accounts receivable balance reported on the balance sheet is accurate. The other options are not the main purpose of preparing this listing.

Z Company Uses a Subsidiary Ledger and Control Account System