ACCOUNTS RECEIVABLE LEDGER OR FILE - 7814-MAR-1987
(Renumbered from 7815)
(Subsidiary to Account Nos. 1311, 1312, 1313, 1319, 1330, 1360, 1510, 1590)
Either a ledger or a file, or both, may be maintained for receivables as circumstances warrant, a separate section being subsidiary to each applicable General Ledger receivable account. Use of a file of open invoices saves posting to individual accounts when all receivables are billed and most are paid in full by single remittance. A copy of each invoice is placed in the file when prepared and is removed and transferred to a closed file when paid. When a ledger is used, an account for each debtor is debited when amounts become due and credited when payments are received. An Accrued Income Receivable account is established for each subsidiary classification of such income accrued as of June 30.