Question

Markus Company maintains a separate accounts receivable account for each customer. On June 18, Markus sells $6,400 services on account to customer Anthony and $1,000 services on account to customer Walker. How will these two transactions affect the control and subsidiary accounts?

Answer 1

The control account, account receivable will be increased with a debit of $7400.

Step-by-step explanation:

The selling of goods worth $6400 or services worth $1000, both of then increases the balance of accounts receivable which in turn increases the subsidiary accounts by $6400 + $1000 = $7400.

The control account contains the subsidiary ledgers, this means that its balance would also be increased by $7400.

Therefore, The control account, account receivable will be increased with a debit of $7400.