Question 5 (10 marks) XYZ Company sells electronic parts. Most transactions with customers are immediately paid with cash or check. However, XYZ has five major customers that can purchase on credit. These approved customers routinely buy on credit. The terms of the credit provide that payment must occur within 30 days, and each customer has a maximum credit limit of RO. 10,000. The following information is about each of the 5 credit customers' transactions during month of May: A B Customers Transactions information Customer At the beginning of the May, Customer A account has RO. 1,403. On May 5, he purchases on account for RO.7,237. On May 17, paid RO. 1,403. Beginning balance, RO. 5,275. On May 15, Purchase on account for RO. 2,275. On May 26, made a payment of RO. 4,275. Beginning balance, RO.O. On May 9, Purchase on account for RO. 9,550. Beginning balance, RO. 7,557. On May 7, Purchase on account RO. 2,100. On May 22, Purchase on account RO. 9,444. On May 11, he made a payment of RO.7,557. Beginning balance, RO. 2,990. On May 18, Paid RO. 2,990. D E Instructions: a) Prepare a subsidiary accounts receivable ledger account for each of XYZ's customers. (5 Marks) b) Prepare the general ledger Accounts Receivable "control" account. Be sure the total in this account reconciles to the sum of the individual balances in the subsidiary ledgers. (2 Marks) c) What is the purpose of a subsidiary ledger? What other control accounts might be supported by subsidiary ledgers? (To answer this part, words must be at least 100 words). (1.5 Marks) d) Review XYZ's subsidiary ledgers and identify which customer should be put on close watch and monitor for being irresponsible, and which customer has exceeded their credit limit. Justify. (To answer this part, words must be at least 100 words). (1.5 Marks)