Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 3

Accounts receivable and accounts payable
A subsidiary ledger is used for accounts receivable and accounts payable. Thus, transactions that are made "on account" are posted to the individual customer or creditor accounts.
a. Why do companies use subsidiary ledgers for accounts payable and accounts receivable
b. Identify another account that may benefit from using a subsidiary ledger.