Question

A certain guest made arrangements to pay his lodging bill with the hotel's front desk agents, but he left before doing so. The hotel has all the information it needs to bill the former guest, and its accountants are about to make an entry in the transfer journal. The former guest's account should be transferred from the _______ to the _______.

1) Accounts Receivable account; Cash account
2) general journal; sales journal
3) general ledger; subsidiary ledger
4) guest ledger; city ledger

Answer 1

The former guest's account should be transferred from the (Option 4)guest ledger to the city ledger, as the guest ledger contains current guests' accounts, while the city ledger holds accounts receivable for non-guests or guests who have checked out.

Step-by-step explanation:

The correct answer to the question is that the former guest's account should be transferred from the guest ledger to the city ledger. When a hotel guest makes arrangements to pay but leaves before doing so, the amount owed by the guest becomes an account receivable for the hotel. The guest ledger typically contains the accounts of current guests, whereas the city ledger includes accounts receivable or non-guests' accounts, such as those who have checked out but still owe the hotel money. Therefore, when transferring the former guest's balance, it would initially be in the guest ledger, but once they leave without settling the bill, it needs to be transferred to the city ledger so that it can be properly managed and collected.