Markus Company Maintains a Separate Accounts Receivable Account for Each

question 96

Multiple Choice

Markus Company maintains a separate accounts receivable account for each customer.On June 18,Markus sells $6,400 services on account to customer Anthony and $1,000 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 $7,400.
• 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.