Where are the amounts owed by customers for their purchases on credit…

The correct answer is Option (2) → Accounts Receivable Subsidiary Ledger

Amounts that customers owe for goods bought on credit are the firm’s receivables. A separate account for each customer is kept in the accounts receivable (sales) subsidiary ledger, whose total agrees with the control account in the general ledger.

Option (1) Accounts Receivable Journal — Incorrect. A journal records transactions in date order; balances owed are found in the ledger.

Option (3) Sales Journal — Incorrect. It lists credit sales as they happen, not each customer’s balance.

Option (4) General Ledger — Incorrect. It holds only the total (control) account, not the amount owed by each customer.