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Payment posted to AR but deposited in the following month, how to treat?

K P's Profile


I have a scenario where payments were posted to AR at the end of the month but payments were not deposited until the following month. In order for AR Aging to balance to GL I will have to make an adjusting entry at the end of the month and reverse it at the beginning of the next month when cash reached the bank. Am I thinking right? Should I set up a DIT GL to post against? If I am wrong, how should I deal with this? Leave it as is with a footnote?

Thank You!!!


(Accounting) |

I would have a DIT account.
03/31 Debit DIT
Credit Accounts Receivable
04/01 Debit Cash Account
Credit DIT


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