Examples of Accounting Entries for Bills Receivable Activities
These examples illustrate the journal entries that Receivables creates for each bills receivable activity.
Bills Receivable
When you complete a bill receivable, or accept a bill receivable if it requires acceptance, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
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Bills Receivable |
Receivables |
If you cancel a bill receivable that isn't Pending Acceptance, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Receivable |
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Remitted Bills Receivable
When you remit a bill receivable with a standard remittance method, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Remitted Bills Receivable |
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On maturity (or maturity plus the number of collection days, if the bill is remitted on or after maturity), Receivables creates this journal entry on the receipt created:
Debit Account |
Credit Account |
---|---|
|
Remitted Bills Receivable |
Factored Bills Receivable with Recourse
When you factor a bill receivable with recourse, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Factored Bills Receivable |
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Receivables creates this journal entry on the receipt created when factoring with recourse:
Debit Account |
Credit Account |
---|---|
|
Short Term Debt |
When you eliminate the risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:
Debit Account |
Credit Account |
---|---|
Short Term Debt |
Factored Bills Receivable |
When you reestablish risk on a bill receivable factored with recourse, Receivables creates this journal entry on the receipt created:
Debit Account |
Credit Account |
---|---|
Factored Bills Receivable |
Short Term Debt |
Factored Bills Receivable without Recourse
When you factor a bill receivable without recourse, Receivables creates this journal entry on the receipt created:
Debit Account |
Credit Account |
---|---|
|
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Unpaid Bills Receivable
When you mark as unpaid a bill receivable with the status Pending Remittance, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Unpaid Bills Receivable |
Bills Receivable |
When you mark as unpaid a bill receivable with the status Standard Remitted, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Unpaid Bills Receivable |
Remitted Bills Receivable |
When you mark as unpaid a bill receivable with the status Closed that was previously standard remitted:
-
Receivables creates this journal entry on the bill receivable:
Debit Account
Credit Account
Unpaid Bills Receivable
Remitted Bills Receivable
-
The accounting entries are reversed on the receipt that was applied to the bill receivable:
Debit Account
Credit Account
Remitted Bills Receivable
-
Cash (if the receipt was cleared)
-
Remittance (if the receipt wasn't cleared)
-
When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored with recourse:
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Receivables creates this journal entry on the bill receivable:
Debit Account
Credit Account
Unpaid Bills Receivable
Factored Bills Receivable
-
Receivables creates this journal entry on the receipt created when the bill was factored with recourse:
Debit Account
Credit Account
-
Short Term Debt (if the bill was Matured Pending Risk Elimination)
-
Factored Bills Receivable (if the bill was Closed)
Bills Receivable Funds Recovery
-
-
Receivables creates this journal entry on the negative miscellaneous receipt created when the bill receivable factored with recourse is marked as unpaid:
Debit Account
Credit Account
Bills Receivable Funds Recovery
-
Cash (if the original receipt was cleared)
-
Remittance (if the original receipt wasn't cleared)
-
When you mark as unpaid a bill receivable with the status Matured Pending Risk Elimination or Closed that was previously factored without recourse:
-
Receivables creates this journal entry on the bill receivable:
Debit Account
Credit Account
Unpaid Bills Receivable
-
Bills Receivable (if the bill had the status Pending Remittance before it was remitted)
-
Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)
-
-
Receivables creates this journal entry on the receipt created when the bill was factored without recourse:
Debit Account
Credit Account
-
Bills Receivable (if the bill had the status Pending Remittance before it was remitted)
-
Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)
-
Cash (if the receipt was cleared)
-
Remittance (if the receipt wasn't cleared)
-
When you restate a bill receivable that was previously marked as unpaid, Receivables creates this journal entry on the bill receivable:
Debit Account |
Credit Account |
---|---|
Bills Receivable |
Unpaid Bills Receivable |
Recalled Bills Receivable
When you recall a bill receivable that was previously standard remitted or factored:
-
Receivables creates this journal entry on the bill receivable:
Debit Account
Credit Account
-
Bills Receivable (if the bill had the status Pending Remittance before it was remitted
-
Unpaid Bills Receivable (if the bill had the status Unpaid before it was remitted)
-
Remitted Bills Receivable (if the bill was standard remitted)
-
Factored Bills Receivable (if the bill was factored with recourse)
-
-
Receivables creates this journal entry on the receipt created when the bill was factored:
Debit Account
Credit Account
-
Short Term Debt (if the bill was factored with recourse)
-
Bills Receivable (if the bill was factored without recourse and had the status Pending Remittance before it was remitted)
-
Unpaid Bills Receivable (if the bill was factored without recourse and had the status Unpaid before it was remitted)
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Remittance (if the clearance method used is By Automatic Clearing or By Matching)
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Cash (if the clearance method used is Direct)
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Transaction and Receipt Applications
When you apply a receipt to a bill receivable, Receivables creates this journal entry on the receipt:
Debit Account |
Credit Account |
---|---|
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When you apply an on-account credit memo to a bill receivable, Receivables creates this journal entry on the credit memo:
Debit Account |
Credit Account |
---|---|
Receivable |
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Create intercompany accounting entries whenever a transaction, receipt, or credit memo is applied to a bill receivable with a different company segment.