Account Receivable

1.  Receivable Definition

Receivable is right or claim to other side of individual or corps of money or service. Account receivable company happen because there is a transaction goods sale and service with credit payment. Receivable devide  into 3 kind :

• Account Receivable

Account receivable is a debt company to customer as result of goods sale or service by credit with debt and it isn't followed by agreement letter's formal, but there is trust element and capability company.

• Non Trade Receivable

Non trade receivable is a debt company to other side or third side that appear or happen because  there are not transaction goods sales or service by a credit.

• Notes Receivale

Notes receivable is a debt company to other side or third side , use letter of agreement. This letter of agreement it's means receivable has position is stronger , so just not a tust.

Procedure of Accounting Receivable

Konvention Method
In this method posting for accounting receivable is availed one account receivable for record one debtors , so in ledger there are more account receivable suit with amount of debtors so don't need ledger of account receivable becaose in ledger was detail for account receivable.

Account Receivable as Account Control
In this method , beside account receivable as subsidiary ledger in ledger is availed in one account to mutation receivable commonly . The transaction related with mutation receivable such as : sales credit , sales return credit , accept cash and receivable , receivable deleted.

Record of Bad Debt Account Receivable
On sales credit the risk of resulting account receivable that can't be dun. The account receivable that can't be dun is caused of many factors , example debtors bankrupt or didn't the live place.

 The method of bad debt account receivable :
Bad debt account receivable
In this method bad debt is recorded direct in one period at happen bad debt by making a journal:
Bed debt Expense                                      Rp xxxx
       Account Receivable                                           Rp xxxx


The Elimination method
In this method every last period is did evaluation on account receivable whose has company, so is got appraisal loss of account receivable is doubted can be accepted the payment. The record of journal in this method :
Bad debt expense                                     Rp xxxx
     Allowance of Doubtful debt                                Rp xxxx