Markus Company Maintains a Separate Accounts Receivable Account for Each

question 90

Multiple Choice

Markus Company maintains a separate accounts receivable account for each customer.On June 18,Markus sells $6,200 services on account to customer Anthony and $1,600 services on account to customer Walker.How will these two transactions affect the control and subsidiary accounts?

• A)The control account,Accounts Receivable,will be increased with a debit of $7,800.
• B)The individual customer accounts in the subsidiary ledger will be increased with credits.
• C)After posting this sales transaction,the sum of the balances in subsidiary accounts receivable will not equal the control account balance.
• D)The control account will have a debit balance and the subsidiary accounts will have a credit balance.This keeps the accounting equation in balance.

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Definitions:

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.

Intuitive Judgments

Decisions made quickly and without conscious reasoning, relying on gut feelings and automatic cognitive processes.

Quick

The ability to do something or the act of doing something with speed or within a short time frame.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by comparing it to an existing prototype that already exists in our minds.