Question
In an audit of Accounts Receivable, it is found that the total of the account balances in the Subsidiary Accounts Receivable Ledger and the balance
In an audit of Accounts Receivable, it is found that the total of the account balances in the Subsidiary Accounts Receivable Ledger and the balance in the Accounts Receivable Controlling Account are not in agreement. Assume all the subsidiary account balances have been confirmed and that no irregularities exist. Which procedure should be followed for balance sheet purposes?
a. Adjust the balance in the controlling account to the sum of the subsidiary account
b. Adjust the total of the subsidiary accounts to the balance in the controlling account
c. Adjust both balances to the arithmetic average of the two
d. Set up the controlling account balance in the balance sheet and indicate the sum of the subsidiary account balances in the footnote
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started