neoapocalypse
Aug 31, 2007, 07:48 AM
Please help me with this problem.:(
The accounts Receivable has balance of $500.00 as of November 31, 20XX, which comprised of receivable from: Customer A-$300.00 and Customer B-$200.00.
On December 30, a collection was received in check amounting to $1000.00 and was deposited the same day. Detail shows that the payment was made by Customer C in settlement of his account!!!!!!!
Since, there's a need to close the book on December 31, 20XX and assuming that it would take 2 months to clear the erroneous transaction, what is the best way to journalize the transaction on December 30? Where should the collection be credited TEMPORARILY until resolved?
I just need journal entry and simple explanation/assumption.
But if you could give me, basis based on any generally accepted accounting principle or standards, I will be very much be thankful.
Thanks in advance!:)
The accounts Receivable has balance of $500.00 as of November 31, 20XX, which comprised of receivable from: Customer A-$300.00 and Customer B-$200.00.
On December 30, a collection was received in check amounting to $1000.00 and was deposited the same day. Detail shows that the payment was made by Customer C in settlement of his account!!!!!!!
Since, there's a need to close the book on December 31, 20XX and assuming that it would take 2 months to clear the erroneous transaction, what is the best way to journalize the transaction on December 30? Where should the collection be credited TEMPORARILY until resolved?
I just need journal entry and simple explanation/assumption.
But if you could give me, basis based on any generally accepted accounting principle or standards, I will be very much be thankful.
Thanks in advance!:)