A subsidiary ledger is a list that is detailed to support a control account which appears in total or summary on the balance sheet. Accounts receivable subsidiary ledger contains an account of each customer. The returns, payments, and sales are recorded for each customer in their individual accounts and in the control receivable accounts. A subsidiary ledger does not form part of the general ledger. […]

Case Study Questions What is the accounting problem that the Linbarger Company faces? Linbarger Company is operating more on credit rather than selling in cash.  They have a higher collectable accounting receivable which surpasses the industry’s required threshold. According to the company’s industry standard and lender’s mandate, the company must have at least $200,000 in its cash account. To properly understand the current financial state […]