1 beginning balance 4209 purchases on account on may 5

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Unformatted text preview: Receivable “control” account. Be sure the total in this account reconciles to the sum of the individual balances in the subsidiary ledgers. Looking for a career where your ideas could really make a difference? UBS’s Graduate Programme and internships are a chance for you to experience for yourself what it’s like to be part of a global team that rewards your input and believes in succeeding together. Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates. www.ubs.com/graduates Download free eBooks at bookboon.com 21 Accounting Cycle Exercises II Problem 5: Worksheet c) What is the purpose of a subsidiary ledger? What other control accounts might be supported by subsidiary ledgers? d) Review Monte’s subsidiary ledgers and identify which customer should be put on credit watch for being delinquent, and which customer has exceeded their credit limit. Worksheet 5 a) Below are the subsidiary ledgers for each customer (some data is provided): ACCOUNTS RECEIVABLE Date Customer #1 Description May 1 Balance forward May 5 Purchase – Journal page X May 17 Debit Payment – Journal page X Credit 4,209 Balance - 4,209 21,711 - 25,920 - 4,209 21,711 ACCOUNTS RECEIVABLE Date May 1 Customer #2 Description Debit Balance forward Credit 15,825 Balance - 15,825 May 15 May 26 ACCOUNTS RECEIVABLE Date Customer #3 Description Debit Credit ACCOUNTS RECEIVABLE Date Customer #4 Description Debit Credit ACCOUNTS RECEIVABLE Date Balance Balance Customer #5 Description Debit Credit Balance Download free eBooks at bookboon.com 22 Accounting Cycle Exercises II Problem 5: Worksheet b) Below is the general ledger account ACCOUNTS RECEIVABLE Date 01-Jan-05 May 5 Description Debit Balance forward Credit Balance - - 51,675 21,711 Purchase – Journal page X - 73,386 May 7 360° thinking The Accounts Receivable general ledger account balance of __________ is in agreement with the sum of the individual subsidiary accounts ($21,711 + + + = ). c) Please click the advert d) Customer # Customer # is delinquent. ‘s balance exceeds the $30,000 credit limit. 360° thinking . . 360° thinking . Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Download free eBooks at bookboon.com 23 Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. © Deloitte & Touche LLP and affiliated entities. D Accounting Cycle Exercises II Problem 5: Solution Solution 5 a) ACCOUNTS RECEIVABLE Date Customer #1 Description Debit Credit Balance May 1 Balance forward 4,209 - 4,209 May 5 Purchase – Journal page X 21,711 - 25,920 May 17 Payment – Journal page X - 4,209 21,711 ACCOUNTS RECEIVABLE Date May 1 Customer #2 Description Debit Balance forward Credit Balance 15,825 - 15,825 May 15 Purchase – Journal page X 6,825 - 22,650 May 26 Payment – Journal page X - 12,825 9,825 ACCOUNTS RECEIVABLE Date Cus...
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