CLASSIFICATION OF LEDGER ACCOUNTS FOR CREAMERIES. it 
Accounts RECEIVABLE ConTro. (A 4). 
Desir: | 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. ; 
Tee el 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 te Accounts Receivable Control, all sales being posted to accounts from the 
sale slip, and the total of these sales being entered in this account irom 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 ede ier 
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 pation required to 
make payment in full. oe 
MANUFACTURED Propucts INVENTORY (A 6). 
Desir: 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. 
