Sunday, November 11, 2012

The Credit & Collection Task

Author: Ramon B. Nosce




This Article will  teach you how to manage your accounts receivable records and  to keep it updated all the time. Below are guidelines and presentations  of  Cash Sales, Account Receivables, and Accounts Receivable  Individual Ledger Account.

 Transaction is an exchange of goods or services in exchange for a certain sum of money. In every transaction there are only two thing that may  happen. Either goods or services is sold on cash  or on account. Goods or services sold on account is called,  Accounts Receivable. Cash sales  and sales on account  incurred for the day is recorded separately. Henceforth, it is imperative to maintain a separate account. Cash sales to  record and  see the sales incurred for the period  and the total sales made.  Either daily, monthly, quarterly or annually. In accounts receivable  you need to visualized the total sales incurred on account as well as the individual balances of creditors.Your Accounting Software Store

Cash Sales

DATE                        I T E M S                                   SALES INVOICE NO.               AMOUNT

11/11/12                    John Park                                       # 000123                             $ 150.00
11/12/12                    Dave Rooth                                       000124                                  50.00
11/13/12                    Angela Hunts                                     000125                                  80.00


T O T A L    C A S H   S A L E S......................................................................          $ 280.00


+ Detailed information are shown in this illustration above.The date of sales incurred, the  name of customers or perhaps the name of company who bought, the sale invoice number issued and the amount of sales.


Accounts Receivable

DATE                     ITEMS                                   DELIVERY RECEIPT NO.          AMOUNT

11//11/12            Tom Tauz                                              # 000501                          $ 140.00
11/12/12             Andrew Jones                                        #000502                                50.00
11/13/12             Rebecca Gradel                                      #000503                               60.00

T O T A L    A C C O U N T S    R E C E I V A B L E.........................................   $ 250.00

+ In this  illustration above, the following are shown. The date sales on account incurred, the name of customers who bought on account, delivery receipt number used and issued, then the amount of sales on account. The illustration above shows only the the total sales on account for a certain period. Maintaining a  ledger account for individual customer is a must to see their individual balances and when future accounts receivable reconciliation  arises.

Individual Ledger



                                                            Tom Tauz
_________________________________________________________________________________

      Date                    Items                  Debit                 Credit              Balance              Remarks                                        

11/11/12              DR# 000501          $ 140.00                                    $ 140.00       Sales On Account
11/20/12              OR# 000234                                 $ 100.00                 40.00         Partial Payment      
12/11.12              OR# 000259                                      40.00                    -              Full Payment


The illustration above shows Tom Tauz ledger account. The goods sold on account to Tom Tauz was debited. The partial and full payment of Tom Taus was credited and deducted to Tom Tauz debited amount to see the accounts receivable balance. In short, To increase Tom Taus Accounts Receivable Account we Debit and to Decrease Tom Tauz Accounts Receivable Account we credit. Deducting  the Debited amount from the credited amount will result to see the accounts receivable balance.


Other Task   Handling  Accounts Receivable

- Updating Of Accounts Receivable Ledgers
- Confirmation Of Accounts Receivable
- Execution Of Affidavit On Denied Balances
- Collection
- Billing
- Recording In The Ledger
                                                               






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