October 30, 2016 admin

Accounts Receivable—Leasing

Assets

ACCOUNTS RECEIVABLE—LEASING	ASSET ACCOUNT
	1132

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Accounts receivable resulting from the leasing of vehicles to customers.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Amount due from lease vehicle customer				LR
		Accounts Receivable—Leasing				1132
			Lease Vehicle Net Income				5300

	Payment received from customer				CR
		Cash in Bank—General				1001
			Accounts Receivable—Leasing				1132

COMMENTS

Subsidiary records should support this account.
At month end, an ongoing 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.