10536 ENTRY NO. 36 [ACCOUNTS RECEIVABLE ARE SOLD]
(Revised 5/87)
Nature of Transaction:
Agency receives cash payment for the sale of accounts receivables.
Journal Entry for General Ledger Accounts:
Debit:
1110 General Cash a/
1600 Provision for Deferred Receivables b/
8100 Reimbursements c/
9000 Appropriation Expenditures d/
9893 Prior Year Appropriation Adjustments e/
Credit:
1311 Accounts Receivable —Abatements f/
1312 Accounts Receivable —Reimbursements g/
1313 Accounts Receivable —Revenue h/
1314 Accounts Receivable —Operating Revenues h/
1315 Accounts Receivable —Dishonored Checks i/
1319 Accounts Receivable —Other i/
8000 Revenue j/
9892 Prior-Year Revenue Adjustments k/
a/ Total cash received for deposit in the General Cash Account.
b/ Invoice amounts of accounts receivables accounted for during the year on a fully reserved basis.
c/ The amount that represents the difference between the amount of current year invoiced Accounts Receivable–Reimbursements sold and the amount received from the sale of the Accounts Receivable–Reimbursements.
d/ The amount that represents the difference between the amount of current year invoiced Accounts Receivable–Abatements and the amount received from the sale of the Accounts Receivable–Abatements.
e/ The amount that represents the difference between the amount of prior year invoiced Accounts Receivable–Reimbursements and Abatements and the amount received from the sale of those accounts receivable.
f/ Invoice amount of Accounts Receivable–Abatements that have been sold and payment has been received.
g/ Invoice amount of Accounts Receivable–Reimbursements that have been sold and payment has been received.
h/ Invoice amount of Accounts Receivable–Revenue that have been sold and payment has been received.
i/ Invoice amount of Accounts Receivable–Other that have been sold and payment has been received.
j/ Amount of current year revenue received as a result of the sale of Accounts Receivable–Revenue.
k/ Amount of prior year revenue received as a result of the sale of Accounts Receivable–Revenue.
Source:
Document—General Cash Receipt
Register—General Cash Receipts Register
Explanation:
Agencies are authorized to sell their accounts receivable to private persons or entities. Sales of this nature will result in the receipt of payment in amounts less than the invoiced accounts receivable amount. This entry will remove the accounts receivable at it's full invoiced amount and adjust the income/expenditure accounts to reflect the appropriate net amounts received.
