BOOKKEEPING FOR GRAIN ELEVATORS. 



15 



Items of exchange^ tiiul intore^t should be entered at the time the Ixuik .sUaoincnt m 

 received. Such chiiigos and credits will be indicated by charge and credit memoranda 

 submitted by the bank with the paid checks and should be entered in the bank 

 columns, debiting Mi.scellanGOus lOxpense with exchange charges and debiting or 

 crediting Interest account with interest items. 



Notes Receivable iA4). 



Debit: 



1. With the face value of the iiotes 



of others on hand as shown by the 

 Balance Sheet at the time of open- 

 ing the books. 



2. With the face value of new notes 



taken in payment of any debt owed 

 to the company. 



Credit: 



1. With the amounts received in pay- 



ment of notes held. 



2. With the face value of notes receiv- 



able discounted when such Tiotes 

 are reported paid or are past due 

 and no notice of default has been 

 received from the bank. (Debit 

 Notes Receivable Discounted.) 



3. With the face value of notes other- 



wise disposed of. 



See Notes Receivable Discounted. 



Accounts Receivable Control (A5). 



Debit: 



Credit: 



1. With the total of accounts out- 



1. With the monthly totals of collec- 



standing at the time of opening the 



tions on account, as shown by the 



books as shown by the Balance 



credit Accounts receivable column 



Sheet. 



in the Cash Journal. 



2. With the monthly totals of the charge 



2. With any other credits to customer's 



sales as shown by the debit Ac- 



accounts, including the writing off 



counts receivable column in the 



of uncollectible accounts. (See 



Cash Journal. 



Reserve for Bad Debts.) 



The debit balance of this account must equal the total of the outstanding accounts 

 as shown by the Accounts Receivable Ledger. 



*' Accounts Receivable {Grain Commission Accounts) {A6). 



Debit: 



Credit: 



1. With the net proceeds as shown by 



1. With the drafts drawn against ship- 



the accoimt sales rendered for each 



ments. 



car sold. 



2. With the checks received in full or 



2. With the interest due the elevator 



y)artial settlement of account. 



on balances, where gi-ain firms 



3. With the interest charged on 



allow such a chai'ge. (Credit Int- 



balances due commission firms. 



erest account.) 





Separate accounts should be opened with, commission firms with which current busi- 

 ness is transacted. Firms with which an hregular business is done may be assembled 

 on one ledger page headed Miscellaneous Grain Fhms. 



