ENTRY NO. 36 – SALE OF ACCOUNTS RECEIVABLE - 10536

Purpose: This entry is made when agencies/departments receive cash payments for the sale of Accounts Receivable (AR). Agencies/departments are authorized to sell their AR to private persons or entities. Sales of this nature will result in the receipt of payment in amounts less than the invoiced AR amount. This entry will remove the AR at its full invoiced amount and adjust the income/expenditure accounts to reflect the appropriate net amounts received.

 

References: Government Code sections 16584

SAM section 8293.1 and 7620

 

Record Accounts Receivable-Abatements Sold

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1101000	1110	General Cash	a
Debit	5xxxxxx	9000	Appropriation Expenditures	b
Debit	5802000	9893	Prior Year Appropriation Adjustments	c
Credit	1200100	1311	Accounts Receivable-Abatements	d

 

Note:

1. Total cash received for deposit in the General Cash account. 
2. Amount that represents the difference between the amount of current year invoiced Accounts Receivable–Abatements sold and the amount received from the sale of those ARs. 
3. Amount that represents the difference between the amount of prior year invoiced Accounts Receivable–Abatements sold and the amount received from the sale of those ARs. 
4. Invoice amount of Accounts Receivable–Abatements that have been sold.

 

Record Accounts Receivable-Reimbursements Sold

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1101000	1110	General Cash	a
Debit	48xxxxx	8100	Reimbursements	b
Debit	5802000	9893	Prior Year Appropriation Adjustments	c
Credit	1200050	1312	Accounts Receivable-Reimbursements	d

 

Note:

1. Total cash received for deposit in the General Cash account. 
2. Amount that represents the difference between the amount of current year invoiced

   Accounts Receivable–Reimbursements sold and the amount received from the sale of those ARs.

3. Amount that represents the difference between the amount of prior years invoiced Accounts Receivable–Reimbursements and the amount received from the sale of those ARs. 
4. Invoice amount of Accounts Receivable–Reimbursements that have been sold. 

 

 

Record Accounts Receivable-Revenue Sold

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1101000	1110	General Cash	a
Debit	4xxxxxx	8000	Revenue	b
Debit	4180100	9892	Prior Year Revenue Adjustments	c
Credit	1200000	1313	Accounts Receivable-Revenue	d

Note:

1. Total cash received for deposit in the General Cash account.
2. Amount that represents the difference between the amount of current year invoiced Accounts Receivable–Revenue sold and the amount received from the sale of those ARs. 
3. Amount that represents the difference between the amount of prior year invoiced Accounts Receivable-Revenue sold and the amount received from the sale of those ARs. 
4. Invoice amount of Accounts Receivable–Revenue and Accounts Receivable-Operating Revenue that have been sold.

 

 

Record Accounts Receivable-Dishonored Checks or

Accounts Receivable-Other Sold

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1101000	1110	General Cash	a
Debit	1290000	1600	Provision for Deferred Receivables	b
Credit	1200150	1315	Accounts Receivable-Dishonored Checks	c
Credit	1209900	1319	Accounts Receivable-Other	c

 

Note:

1. Total cash received for deposit in the General Cash account. 
2. Amount that represents the difference between the sold accounts receivables accounted for during the year on a fully reserved basis and the amount received from the sale of the Accounts Receivable–Other. 
3. Invoice amount of Accounts Receivable-Dishonored Checks or Accounts Receivable–Other that have been sold.