Question

Smith Company has four customers: E, F, G, and H. The Accounts Receivable balance in the general ledger is $22,000 and the accounts receivable subsidiary ledger of customers E, F. and G have $400, $3,200, and $2,300, respectively. Calculate the amount in the accounts receivable subsidiary ledger account of customer H.

A. $16,100
B. $3,200
C. $18.400
D. $400

Answer 1

To find the amount in the accounts receivable subsidiary ledger account of customer H, subtract the balances of customers E, F, and G from the total accounts receivable balance and you get $16,100.

Step-by-step explanation:

To find the amount in the accounts receivable subsidiary ledger account of customer H, we first need to calculate the total accounts receivable balance in the subsidiary ledger for all customers.

The total accounts receivable balance in the subsidiary ledger is calculated by subtracting the individual balances of customers E, F, and G from the total accounts receivable balance in the general ledger. So, the calculation would be:

Total Subsidiary Ledger Balance = General Ledger Balance - Balance of Customers E, F, and G

Total Subsidiary Ledger Balance = $22,000 - ($400 + $3,200 + $2,300)

Total Subsidiary Ledger Balance = $22,000 - $5,900 = $16,100

Therefore, the amount in the accounts receivable subsidiary ledger account of customer H is $16,100.