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Ex 1 A company uses subsidiary ledgers for Accounts Receivable and Accounts Payable. Transactions that are made on account are posted to these subsidiary

Ex 1 A company uses subsidiary ledgers for Accounts Receivable and Accounts Payable. Transactions that are made "on account" are posted to these subsidiary ledgers in the individual customer or creditor
a) Why do companies use subsidiary ledgers for accounts payable and accounts receivable?
b) Identify 2 other Asset or Liability accounts that could benefit from using a subsidiary ledger.
Ex 2 Grant Company purchased merchandise on account from Spade Company. The selling price of the goods is $700, and the cost for the merchandise to Spice was $550. Spice Company's terms are net 30. Both companies use the perpetual inventory system.
Journalize the transaction on the books of each company.
\table[[Grant Company,Spade Company],[The buyer,Debit,Credit,The seller,Debit,Credit,,],[,,,,,,,],[,,,,,,,],[,,,,,,,],[,,,,,,,]]
Ex 3 This information relates to Jason Co.
April 5 Purchased merchandise from Nolan Company for $20,000, terms 210, net 30, FOB shipping point. Who owned the merchandise while in transit
April 6 Purchased equipment on account for $45,000 from Walsh Corporation.
April 7 Paid frieght costs of $200 for merchandise purchased from Nolan Company.
April 8 Returned $2,500 of merchandise from the April 5 purchase from Nolan Company.
April 15 Paid the net amount due to Nolan Company.
\table[[,Perpetual System,Debit,Credit,Periodic System,Debit,Credit],[Apr 5,,,,,,],[,,,,,,],[,,,,,,],[Apr 6,,,,,,],[,,,,,,],[,,,,,,],[Apr 7,,,,,,],[,,,,,,]]
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