 Hello, in this lecture we will define accounts receivable ledger. According to fundamental account and principles while 22nd edition the definition of accounts receivable ledger is subsidiary ledger listing individual customer accounts. When we think about the accounts receivable ledger we can think of it backing up the amount in accounts receivable on the balance sheet or the trial balance. We're backing it up not by date. We don't want to know the order of the transaction. In this case we want to know who owes us money. For example, if we have the trial balance here we might have the accounts receivable number on the trial balance representing money owed to us by customers. A boss might ask how much money is owed to us. We can look at the trial balance of the balance sheet and say 27,000 is owed to us. The next question that will come is who owes us money? When are they going to pay us? Have we called these individuals? And if we look at the normal backup for the account for all accounts which is the general ledger it gives us more detail. However, it does not give us the detail we're looking for. It gives us the detail by date. This is the history by date telling us that type of story getting to this bottom line number but we want to need this we want this information in order of customer. For example, Smith owes us 5000 Ryan owes us 15 Adam's owed owes us 7 and that is how we're going to get to this 27,000. That gives us the information so that we can follow up on this information and check in with these individuals to see who owes us in order to collect on the 27,000