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Specialty Foods Company maintains a separate accounts receivable account for each customer. Regarding this accounting treatment, which of the following statements is incorrect? O A.
Specialty Foods Company maintains a separate accounts receivable account for each customer. Regarding this accounting treatment, which of the following statements is incorrect? O A. The purpose of this accounting treatment is to account for payments received from the customer and the amounts still owed. OB. When a customer makes a payment on account, a debit is posted to the accounts receivable subsidiary account as well as to the accounts receivable control account. OC. The separate customer accounts receivable are called subsidiary accounts. OD. The sum of all balances in the subsidiary accounts receivable equals a control account balance
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