A credit sale of $5,275 to a customer would result in which of the following? A)

Question

A credit sale of $5,275 to a customer would result in which of the following? A) A debit to the Accounts Receivable account in the general ledger and a debit to the er. B) A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger. C) A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger D) A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger. E) A credit to Sales and a credit to the customer's account in the accounts receivable subsidiary ledger

Explanation / Answer

Answer

A, A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable ledger.

When Credit sales are made account receivable is created which is an asset hence it is debited to Account receivable account and to its subsidiary ledger account for Controle purpose,

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