Question
Accounts Receivable Control account for Zazu Toys in the general ledger on 1 December was $8,127. The subsidiary ledger contained two credit customers and the
Accounts Receivable Control account for Zazu Toys in the general ledger on 1 December was $8,127. The subsidiary ledger contained two credit customers and the following balances on 1 December: Simba. A. $4,000 and Mufasa, B. $4,127. At 31 December, a summary of entries made in the sales journal and cash receipts journal were as follows:
| Sales Journal | Cash Receipts Journal |
| Simba, A. $3,330 | Simba, A. $1,850 |
| Mufasa, B. $2, 450 | Mufasa, B. $920 |
Required:
a) Calculate the ending balance for Simba, A. and Mufasa, B. at 31 December (6 marks)
b) Discuss the importance of accounts receivable subsidiary ledgers (3marks)
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
