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Accounts Receivable Subsidary Ledger

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In at least 200 words, describe how accounts receivable arise and how they are accounted for, including the use of a subsidiary ledger and an allowance account.

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The solution explains the details about accounts receivable, how they arise and how are they accounted for.

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Accounts receivable arise when a sale is made on credit. Since the cash is not yet collected, the sale result in a receivable and that is recorded under the account of accounts receivable.

Accounts receivable are accounted for using a control account in the general ledger and keeping subsidiary accounts in the accounts receivable ledger. The reason for this is that there would be numerous credit customers and the general ledger would be cluttered ...

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