Final answer:
Waren Sports Supply maintains accurate accounts receivable by updating the subsidiary ledger with every credit sale, payment, and adjustment, and by reconciling these totals with the general ledger's control account regularly.
Step-by-step explanation:
Waren Sports Supply ensures that their accounts receivable subsidiary ledger accurately reflects what each customer owes by maintaining a detailed record for each customer account.
This involves recording all sales on credit, payments received, and any adjustments such as discounts, returns, or allowances for each customer individually.
By consistently updating this ledger with every transaction that affects accounts receivable, the company can ensure that the balance in the subsidiary ledger matches the total amount shown in the general ledger's accounts receivable control account.
To maintain accuracy, transactions are posted periodically from the journal where they are initially recorded to the individual customer accounts in the subsidiary ledger.
This process allows the company to track and manage the amounts owed by each customer separately. The regular reconciliation of the totals in the subsidiary ledger against the control account in the general ledger is essential.
This helps to detect any discrepancies or errors and ensures the integrity of the financial statements.
Furthermore, the use of accounting software facilitates this process by automating entries and calculations, reducing the likelihood of human error.