■CLASSIFICATION" OF LEDGER ACCOUNTS FOR CREAMERIES. 

 Accounts Receivable Control (A 4). 



Debit: 



Credit: 



1. With the total amount charged to 



1. At the close of the period with the 



customers' individual account as 



total amount received from cus- 



shown by the Balance Sheet at 



tomers on account. 



the time of opening the books. 



2. With any other credits to customers' 



2. At the close of the period with the 



accounts, including the writing off 



total of all sales charged to cus- 



of doubtful accounts. 



tomers' accounts during the 





period . 





Inasmuch as the total of all charges and credits applying to the customers' indi- 

 vidual accounts constitute the entries to the above account, it is apparent that this 

 account is a control over the customers' individual accounts. It should in all cases 

 be made to agree with the total of the individual accounts before a Trial Balance is 

 taken. The balance, which is the total amount due from customers, must equal the 

 net total of the balance of the individual amounts. 



Patrons' Accounts Receivable (A 5). 



Debit: 



Credit: 



1 . With the amount of any purchase by 



1. With any payments on account by 



patrons during the period. 



patrons. 





2. With any deductions from patrons' 





vouchers at the time of. making 





settlement. 



This is a control account for sales to patrons, and should be operated in a manner 

 similar- to Accounts Receivable Control, all sales being posted to accounts from the 

 sale slip, and the total of these sales being entered in this account from the Journal. 



It may happen that a patron who has furnished only a small amount of butter fat 

 during the period will have purchased from the creamery more than his voucher 

 will cover. The voucher, however, should be fully made out, showing all amounts 

 to the patron's credit and the charges against him, together with the balance due 

 the creamery. The balance on this account, together with the amount of any new 

 purchases, should be deducted from the next vouchers, or the patron required to 

 make payment in full. 



Manufactured Products Inventory (A 6). 



Debit: 



Credit : 



1. With the value of all manufactured 



1. 



Immediately after the beginning of 



products (and merchandise) on 





a new period with the balance of 



hand as shown by the Balance 





this account. 



Sheet at the time of opening the 







books. 







2. With the value of all manufactured 







products (and merchandise) on 







hand at the close of the fiscal 







period . 







