October 30, 2016 admin

Accounts Receivable—Rental

Assets

ACCOUNTS RECEIVABLE—RENTAL	ASSET ACCOUNT
	1131

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Accounts receivable resulting from the rental of vehicles to customers.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Accounts due from rental customer				LR
		Accounts Receivable—Rental				1131
			Rental Vehicle Net Income				5200

	Payments received from customers				CR
		Cash in Bank—General				1001
			Accounts Receivable—Rental				1131

COMMENTS

Subsidiary records should support this account.
At month end, an aging schedule should be prepared for management review. See Account 1110, Accounts Receivable—Vehicles, for method of aging individual receivables.
Amounts 90 days past due should be reserved in Account 1290, Allowance for Doubtful Receivables. Before uncollectible accounts are written off, proper management authorization should be obtained.