A business keeps its individual customer accounts as memorandum records outside the double entry system. Where is the double entry for credit sales completed in the general ledger?

Correct answer: D) By posting the sales day book totals to the receivables control account and the revenue account

Explanation

When the receivables ledger is a memorandum ledger, the receivables control account forms part of the double entry in the general ledger. The periodic totals from the sales day book are debited to receivables control and credited to revenue (and VAT). Individual invoices are posted to customer accounts purely for information and credit control.