Ask Question
22 February, 11:26

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

+3
Answers (2)
  1. 22 February, 13:21
    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
  2. 22 February, 13:45
    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.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A business maintains subsidiary accounts for each of its customers. On May 15, the business provides services on account: $1,900 to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers