Ex $1$ A company uses subsidiary ledgers for Accounts Receivable and Accounts Payable. Transactions that are made $"$on account" are posted to these subsidiary ledgers in the individual customer or creditor

a$)$ Why do companies use subsidiary ledgers for accounts payable and accounts receivable?

b$)$ Identify $2$ other Asset or Liability accounts that could benefit from using a subsidiary ledger.

Ex $2$ Grant Company purchased merchandise on account from Spade Company. The selling price of the goods is $$700,$ and the cost for the merchandise to Spice was $$550.$ Spice Company's terms are net $30.$ Both companies use the perpetual inventory system.

Journalize the transaction on the books of each company.

$\backslash$table$[[$Grant Company,Spade Company$],[$The buyer,Debit,Credit,The seller,Debit,Credit,,$],[,,,,,,,],[,,,,,,,],[,,,,,,,],[,,,,,,,]]$

Ex $3$ This information relates to Jason Co$.$

April $5$ Purchased merchandise from Nolan Company for $$20,000,$ terms $\frac{2}{10},$ net $30,$ FOB shipping point. Who owned the merchandise while in transit

April $6$ Purchased equipment on account for $$45,000$ from Walsh Corporation.

April $7$ Paid frieght costs of $$200$ for merchandise purchased from Nolan Company.

April $8$ Returned $$2,500$ of merchandise from the April $5$ purchase from Nolan Company.

April $15$ Paid the net amount due to Nolan Company.

$\backslash$table$[[,$Perpetual System,Debit,Credit,Periodic System,Debit,Credit$],[$Apr $5,,,,,,],[,,,,,,],[,,,,,,],[$Apr $6,,,,,,],[,,,,,,],[,,,,,,],[$Apr $7,,,,,,],[,,,,,,]]$