Alltech Company Maintains a Separate Accounts Receivable Account for Each

question 43

Multiple Choice

Alltech Company maintains a separate accounts receivable account for each customer.On June 18,Alltech provides $6100 of services on account to customer Anthony and $1000 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 $7100.
• 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:

Credits Earned

A measure of academic progress, representing the completion of certain coursework or educational requirements.

Researcher

An individual who conducts systematic investigation to establish facts or principles or to collect information on a subject.

Survey Of Consumer Finances

The Survey of Consumer Finances is a detailed survey conducted by the Federal Reserve to gather information about household finances in the United States, including income, saving, debt, and net worth.

SCF

Statement of Cash Flows, a financial report that details the inflows and outflows of cash for a business over a specified period.