Lastly, in a general ledger, most transactions have different characteristics, but in an accounts receivable subsidiary ledger, a company records all transactions similarly.

Calculating the accounts receivable turnover ratio can be done in a few simple steps. For example, Company A had net credit sales of $500,000 and average accounts receivable of $50,000 for the year.

A corresponding debit or credit must be posted to another account for the same amount affecting accounts receivable.In the above example: Along with the sub-ledger journal entry, Pretty Petals ...