A subsidiary ledger is used for accounts receivable and accounts payable. Thus, transactions that are made on

Question:

A subsidiary ledger is used for and Thus, transactions that are made “on account” are posted to the individual customer or vendor accounts.
a. Why do companies use subsidiary ledgers for and Identify another account that may benefit from using a subsidiary ledger.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...