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Unformatted text preview: Purchase on account on May 7, $2,100. Purchase on account on May 22, $9,444. Payment on account on May 11, $7,557. Customer #5 Beginning balance, $2,990. Payment on account on May 18, $2,990. (a) Prepare a subsidiary accounts receivable ledger account for each of Narayan's customers. (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. (c) What is the purpose of a subsidiary ledger? What other control accounts might be supported by subsidiary ledgers? (d) Review Narayan's subsidiary ledgers and identify which customer should be put on credit watch for being delinquent, and which customer has exceeded their credit limit....
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- Spring '11