ENTRY NO. 9 – WRITE-OFF OF ACCOUNTS RECEIVABLE - 10509

(Revised: 12/2021)

Purpose:  To record the write-off of outstanding accounts receivable (AR) from the agency’s/department’s accounts.

References:  Government Code sections 12438 and 13941

                          SAM sections 8293.1, 8293.4, 8295, and 8072

Record Deferred Receivables for Write-Off of ARs

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1290000	1600	Provision for Deferred Receivables	a
Credit	1200050	1312	Accounts Receivable-Reimbursements	b
Credit	1200000	1313	Accounts Receivable-Revenue	c
Credit	1200150	1315	Accounts Receivable-Dishonored Checks	d
Credit	1200200	1316	Accounts Receivable-Cash Shortages	e
Credit	1209900	1319	Accounts Receivable-Other	f

 

Note:

1. Amount of accounts receivable for deferred revenue, deferred reimbursements, or other deferred accounts receivable.
2. Amount of Accounts Receivable-Reimbursements
3. Amount of Accounts Receivable-Revenue.
4. Amount of Accounts Receivable-Dishonored Checks.
5. Amount of Accounts Receivable-Cash Shortages.
6. Amount of accounts receivable for abatements, reimbursements, dishonored checks or identified cash shortages, applicable to reverted appropriations or other accounts receivable not otherwise classified.

 

Note: This entry does not write off deficiencies in an established fund balance (e.g., revolving fund, depositors' trust fund, or uncleared collections).

Record Write-Off of ARs for Revenue

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	41xxxxx	8000	Revenue	a
Debit	4180100	9892	Prior Year Revenue Adjustments	b
Credit	1200000	1313	Accounts Receivable-Revenue	c

 

Note:

1. Amount of current year accounts receivable for dishonored checks or identified cash shortages applicable to revenue and all accounts receivable for unidentified cash shortages. 
2. Amount of accounts receivable related to dishonored checks or identified cash shortages applicable to revenue, which was identified as being earned as of the preceding June 30. 
3. Amount of Accounts Receivable-Revenue. 

Record Write-Off of ARs for Reimbursement

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	48xxxxx	8100	Reimbursements	a
Debit	5802000	9893	Prior Year Appropriations Adjustments	b
Credit	1200050	1312	Accounts Receivable-Reimbursements	c

 

Note:

1. Amount of accounts receivable for reimbursements, dishonored checks, or identified cash shortages, applicable to current fiscal year appropriation reimbursements.
2. Amount of accounts receivable for abatements, reimbursements, dishonored checks, or identified cash shortages, applicable to prior years appropriations but not yet reverted.
3. Amount of Accounts Receivable-Reimbursements.

Record Write-Off of ARs for Expenditures

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	5xxxxxx	9000	Appropriation Expenditures	a
Debit	5802000	9893	Prior Year Appropriations Adjustments	b
Credit	1200100	1311	Accounts Receivable-Abatements	c

 

Note:

1. Amount of accounts receivable for abatements, dishonored checks, or identified cash shortages, applicable to current fiscal year appropriation expenditures.
2. Amount of accounts receivable for abatements, reimbursements, dishonored checks, or identified cash shortages, applicable to prior years appropriations but not yet reverted.
3. Amount of Accounts Receivable-Abatements.