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28 October, 02:29

A business maintains subsidiary accounts for each of its customers. On May 15, the business provides services on account: $1,900 to customer J. Anthony; $4,900 to customer A. Martin; and $1,300 to customer S. Lee. Which journal entry is needed to record these transactions on May 15 (Choose the best answer) ? A) May 15: debit Accounts Receivable $8,100; credit Service Revenue $8,100B) May 15: debit Accounts Receivable-J. Anthony $1,900, A. Martin $4,900, S. Lee $1,300; credit Service Revenue $8,100C) May 15: debit Service Revenue $8,100; credit Acct. Rec. $8,100D) May 15: debit Accts. Rec. Control $8,100; credit Sales Revenue $8,100May 15: debit Accts. Rec.-J. Anthony $1,900, A. Martin $4,900, S. Lee $1,300; credit Accts. Rec. Control $8,100

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Answers (2)
  1. 28 October, 04:26
    0
    B

    Explanation:

    The option B is correct because in individual subsidiary accounts, each customer entry will be separately made and total sales revenue will be recorded.
  2. 28 October, 05:48
    0
    B) May 15: debit Accounts Receivable-J. Anthony $1,900, A. Martin $4,900, S. Lee $1,300; credit Service Revenue $8,100

    Explanation:

    customer J. Anthony ⇒ $1,900 customer A. Martin ⇒ $4,900 customer S. Lee ⇒ $1,300

    total sales reported during May 15 = $8,100

    A subsidiary ledger account is an individual account set for a specific client that is part of a general ledger account. In this case, the individual ledger accounts are part of the accounts receivable account.

    You can record each transaction individually or jointly:

    May 15, services provided on account:

    Dr Accounts receivable - J. Anthony 1,900

    Cr Sales revenue 1,900

    May 15, services provided on account:

    Dr Accounts receivable - A. Martin 4,900

    Cr Sales revenue 4,900

    May 15, services provided on account:

    Dr Accounts receivable - S. Lee 1,300

    Cr Sales revenue 1,300

    or

    May 15, services provided on account:

    Dr Accounts receivable - J. Anthony 1,900

    Dr Accounts receivable - A. Martin 4,900

    Dr Accounts receivable - S. Lee 1,300

    Cr Sales revenue 8,100
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