The accounts receivable subsidiary ledger is considered a ____ file in a system

Question

The accounts receivable subsidiary ledger is considered a ____ file in a system In preparing closing entries, the entry to close INCOME SUMMARY for a company that has a net loss will include a debit to which account? In the following segment of a document flowchart, what does symbol A most likely represent? Purchase inventory on account.___ Sell inventory to a customer on account.___ Receive payment from a customer on account, with a sales discount taken.___ Pay principal on a note payable.___ Write-off a customer's account as uncollectible___

Explanation / Answer

Answer:

(26) The accounts receivable subsidiary ledger is considered as a transaction file in a system.

(27) The net loss of the company will be debited to the retained earnings a/c. The balance of the income statement whether profit or loss is transferred to the retained earnings A/c at the end of the year. If it reflects profit then it wil be credited to retained earnings a/c and if it is a loss it will be debited to retained earnings a/c.

(28) A represents: Prepare sales invoice.

After a cutomer places an order, a bill of lading is to be collected which is issued from the shipping agent who will ship the goods to the customer. It serves as a security for the seller to receive payments. Then the seller prepares a sales invoice for the sale made to the customer.

(29) Purchases inventory on account: Purchase journal

(30) Sell inventory to a customer on account: Sales Journal

(31) Receive cash from customer on account of sales discount - Cash receipts journal

(32) Pay principle on a note payable: Cash disbursements Journal

(33) Writeoff a customer's account as uncollectible: General Journal

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