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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