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Accounts Receivable (Order to Cash or AR) Journal Entries

To record a sale to an account customer
Account
Debit
Credit
Accounts receivable
XXX
Revenue
XXX

To receive a cash payment from an account customer
Account
Debit
Credit
Cash
XXX

Accounts receivable

XXX

To receive a cash payment from an account customer taking cash discount
Account
Debit
Credit
Cash
XXX
Discount allowed
XXX
Accounts receivable
XXX

A credit note is issued to a customer
Account
Debit
Credit
Revenue
XXX
Accounts receivable
XXX

To write off an accounts receivable as a bad debt
Account
Debit
Credit
Bad debt expense
XXX
Accounts receivable
XXX

To set up an allowance for doubtful debts
Account
Debit
Credit
Bad debt expense
XXX
Allowance for doubtful debts
XXX






To use the allowance for doubtful debts to write off an accounts receivable
Account
Debit
Credit
Allowance for doubtful debts
XXX
Accounts receivable
XXX

To record cash received after an accounts receivable has been written off
Account
Debit
Credit
Cash
XXX
Accounts receivable
XXX
Accounts receivable
XXX
Allowance for doubtful debts
XXX

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