Office Management |
| OTHER LIABILITIES |
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CUSTOMER DEPOSITS AND CUSTOMER ACCOMMODATION |
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To maintain control over customer deposits and customer accommodations, a listing of these items should be prepared monthly including date, customer’s name and amount due. The totals should agree with the applicable general ledger control account balance. The listings should be reviewed periodically for old items which should be disposed of in accordance with the advice of legal counsel. |
ACCRUED LIABILITIES |
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The nature of the accrued liability determines the type of subsidiary record necessary to support the balance in the account. For example, Form FMC 61, Prepaid and Accrued Expense Schedule (illustrated under Prepaid Expenses), can be used to schedule monthly accruals for items such as real and personal property taxes, bonuses and vacation pay. Accruals that are recorded at the end of one month and paid or reversed the following month, such as interest and payroll accruals, do not require a subsidiary record. |