220 Accounts Receivable - Customers

Assets

Receivables

Synopsis

Account 220 is established to record the monies owed by customers who have open accounts with the dealership.

Debits

Credits

  1. The amounts due from customer charge sales

  2. The amount of deposited cheques returned by the bank

  3. The amount of Lease payments due on leases recorded as sales

  4. The earned portion of deferred income on leases recorded as sales

  5. The amount of Repossession surpluses paid

 

  1. The amount of Customer payments received

  2. The value of Credits allowed to customers

  3. The Deposits received on future sales

  4. The amount of accounts considered uncollectible

  5. The amount of deferred income on leases recorded as sales

  6. The amount of Repossession surpluses due customers

 

Comments

A debit balance represents the net balances of customer accounts.