October 30, 2016 admin

Receivables—Officers & Employees

Assets

RECEIVABLES—OFFICERS & EMPLOYEES		ASSET ACCOUNT
		1810

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Loans and cash advances to officers and employees, including amounts secured by notes.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Advances to new car salespeople				CD
		Receivables—Officers & Employees				1810
			Cash in Bank—General				1001

	Repayment of advance through payroll deduction				PR
		Accrued Payroll				2410
			Receivables—Officers & Employees				1810

	Loan to porter				CD
		Receivables—Officers & Employees				1810
			Cash in Bank—General				1001

	Monthly accrual of interest on note receivable				SE
		Receivables—Officers & Employees				1810
			Interest Income				9150

COMMENTS

Subsidiary records should support this account.
At month end, an aged schedule of unpaid amounts should be prepared for management review.
Amounts advanced to partners or proprietors should be charged to Account 2840, Partners’ or Proprietor’s Drawing.
Sales of parts and service on open account to employees should be charged to Account 1120, Accounts Receivable—Parts & Service.