Future Business Leaders of America (FBLA) Accounting Practice Test

Which ledger is used to track individual customer accounts?

1. Main Ledger

2. Sales Ledger

3. Accounts Payable Ledger

4. Accounts Receivable Subsidiary Ledger

The correct answer is: Accounts Receivable Subsidiary Ledger

The Accounts Receivable Subsidiary Ledger is utilized to track individual customer accounts specifically. This ledger is essential for businesses that extend credit to customers, as it provides detailed information regarding each customer's outstanding balances, payment history, and transaction details. By maintaining this ledger, a company can effectively manage its credit relationships and monitor cash flow associated with sales on credit. In contrast, the Accounts Payable Ledger is focused on the amounts the business owes to suppliers and vendors, rather than the amounts owed by customers. The Sales Ledger, while it may refer to sales transactions, does not typically capture the detailed information about individual customer accounts in the same way. The Main Ledger, or General Ledger, summarizes the overall financial information for the business and does not provide the granularity needed to track individual customer transactions. Thus, the Accounts Receivable Subsidiary Ledger is the appropriate choice for managing individual customer accounts.