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:

Industrial Products

Goods produced and used in industrial processes, including machinery, equipment, and materials, distinct from consumer products sold for personal use.

Market Tests

Trials conducted in a specific geographic area or with a targeted group of consumers to evaluate the potential success of a new product, service, or marketing strategy before a wider launch.

Sales Force Estimates

Projections made by a company's sales team regarding future sales, based on their experiences and market understanding.

Market Tests

Trials conducted to evaluate the viability of a product or service in a specific market segment by exposing it to a representative slice of potential consumers.