Assignment of Accounts Receivable Journal Entries

The assignment of accounts receivable journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting relating to the assignment of accounts receivable.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified November 6th, 2016 by Michael Brown
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Factoring Accounts Receivable Journal Entries

The factoring accounts receivable journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accounts receivable factoring.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified March 25th, 2019 by Michael Brown
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Receivables Financing

Accounts receivable financing is a method used by a business to raise additional funding using the value of its balance sheet accounts receivable. The three main methods of using accounts receivable are factoring, assigning, and pledging.

Last modified March 25th, 2019 by Michael Brown
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Accounts Receivable

Accounts receivable are amounts which are owed to a business by its customers, they are sometimes referred to as trade debtors. Accounts receivable are recorded in the balance sheet of the business under the heading current assets, that means they are convertible into cash within a year.

Last modified November 8th, 2018 by Michael Brown
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Credit Note Journal Entries

The credit note journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of customer credit notes.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified July 2nd, 2018 by Michael Brown
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Credit Note for Discount Allowed

When a customer is given an invoice discount, a credit note needs to be issued to the customer to adjust the balance on the accounts receivable and to record the discount allowed in the income statement.

Last modified November 6th, 2016 by Michael Brown
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Customer Credit Note Issued

When a customer notices a mistake on an invoice before payment, then the business issues a credit note to reduce the amounting outstanding on the invoice prior to settlement.

Last modified August 8th, 2017 by Michael Brown
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Aged Accounts Receivable

The aging of accounts receivable report is a listing of outstanding balances by customer, analyzed into difference age classifications based on the number of days a customer sales invoice is overdue for payment.

Last modified May 4th, 2019 by Michael Brown
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Factoring Receivables

When a business sells products and services to a customer on account, the goods are delivered and the sales invoice is created, but the customer does not have to pay until the invoice due date. The invoice is posted to the customers account and becomes an accounts receivable balance until the amount is paid by the customer.

In the meantime, the business has its cash tied up in the customer account receivables until the customer pays on the invoice due date. However, by using factoring, the business can release this cash by selling the invoices to a third party, normally called the factor.

Last modified April 18th, 2019 by Michael Brown
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Account Receivable Collection Journal Entry

Accounts receivable are amounts owed to a business by customers for credit sales.

When payment is received an account receivable collection journal entry ( ar journal entry) is required to record the cash received and to clear the balance on the accounts receivable account of the customer.

Last modified April 18th, 2019 by Michael Brown
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Received Cash on Account Journal Entry

A received cash on account journal entry is needed when a business has received cash from a customer and the amount is not allocated to a particular customer invoice or the customer has not yet been invoiced.

Last modified April 18th, 2019 by Michael Brown
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