October 30, 2016 admin

Allowance for Finance Receivables—Deferred

Assets

ALLOWANCE FOR FINANCE RECEIVABLES—DEFERRED ASSET ACCOUNT
1805

ACCOUNT EXPLANATION
Allowance for contingent losses on deferred finance income receivables.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for contingent losses SE
    Finance Contracts Income—New 5000
    Finance Contracts Income—Used 5100
      Allowance for Finance Receivables—Deferred 1805
             
  Charge-back of deferred finance income receivables G
    Allowance for Finance Receivables—Deferred 1805
      Finance Receivables—Deferred 1800
COMMENTS
  • Monthly provision should be made as necessary based upon past experience supplemented with judgment as to the probable amount of future losses.
  • Special treatment of this account may be required for income tax purposes, and dealers should consult their tax counsel.