The Accounts Payable Subsidiary Ledger Has Postings from Which Sets

question 36

Multiple Choice

The accounts payable subsidiary ledger has postings from which sets of journals?

• A)sales, cash payments, and general
• B)purchases, cash receipts, and sales
• C)purchases, cash payments, and general
• D)purchases, general, and cash receipts

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Definitions:

Allowance Method

An accounting technique that estimates uncollectible accounts receivable to record bad debts expense, reflecting more accurate accounts.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable which may not be collected.

Estimated Realizable Value

The anticipated amount of money that an asset is expected to bring upon sale or disposition, after accounting for costs of sale or disposal.

Accounts Receivable

Accounts receivable are amounts owed to a company by its customers for goods or services delivered on credit but not yet paid for.