Question

Refer to Sales Journal below:

Sales Journal Jan 4		Cr.
Archer Limited	Bought 6 boxes of tiles	1,000
Beta Company	Purchased 8 boxes of tiles	1,250
Cooper Limited	Purchased a cord of timber	1,800
Dunwoody Company	Purchased spare parts	200
Archer Limited	Purchased concrete	2,000
Beta Company	Purchased tools	900
	Total sales	7,150

Based on the information shown in the illustration above, the Accounts Receivable sub-ledger will contain:

Select one:

a. One account

b. At least six accounts

c. At least four accounts

d. At least five accounts

Answer 1

Correct answer-----------c. At least four accounts

.

In accounts receivable sub ledger the accounts of individual receivables are recorded.

There are 6 entries in above statement in which 2 are of dublicate account. Archer has two transactions and Beta company has two so only one account each will be opened for archer and beta company. and other two accounts will be of Cooper company and Dunwoody company.