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A business maintains a separate accounts receivable account for each customer in order to account for...

A business maintains a separate accounts receivable account for each customer in order to account for payments received from the customer and amounts still owed by the customer. true or false?
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Answer #1

OPTION - TRUE.

A business should maintain multiple account Receivables account for which the goods are sold are sold on account basis. When the amount has been collected by the company from the accounting receivables a part of their outstanding balances gets reduced and the balance has be paid by the individual customer.

If the company maintains separate account Receivables account it becomes easy for the company to collect the amount from its account Receivable and identify the outstanding balance in India account Receivables.

If you have any doubts please comment on the answer.

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