Double entry for sales and trade receivables Flashcards
1
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2
Q
What is a subsidiary receivables ledger?
A
-Contains a ledger account for each individual credit customer. The subsidiary receivables ledger accounts are not part of the general ledger and therefore are not part of the double entry system.
3
Q
What is a receivables ledger control account?
A
-A general ledger account for trade receivables (credit customers), representing the total of all accounts in the receivables ledger.
4
Q
What is a discounts allowed account?
A
-The account in the general ledger used to record prompt payment discounts taken by credit customers.
5
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6
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