more-arw search

Q&A Forum

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

K P's Profile

Hello,

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!!!

Answers

Anonymous
(Accounting) |

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

101 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.