Alltech Company Maintains a Separate Accounts Receivable Account for Each

question 196

Multiple Choice

Alltech Company maintains a separate accounts receivable account for each customer. On June 18, Alltech provides $6,300 of services on account to customer Anthony and $1,200 of 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 $7,500.
• B) The individual customer accounts in the subsidiary ledger will be increased with credits.
• C) After posting these transactions, 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:

Process Control

Process control involves continuously monitoring and adjusting processes to maintain desired outcomes in manufacturing, production, or other operation systems.

Decision Control

The process of making decisions and establishing policies that guide the actions of an organization.

Third-party Interventions

Mediation or mediation-like approaches by an external party to resolve conflicts or disputes within an organization, aiming to reach a mutually acceptable solution.

Sequential Work Units

A series of tasks or operations that are carried out in a specific, ordered sequence to achieve an objective or produce a desired outcome.