[RYK]

Another problem I am stuck on:
Dec 14: Record Sale to Bowery Super Warehouse $6475.00
Debit A/R $6475.00
Credit Sales $6475.00

Dec 26: Bowery paid 1/2 of invoice and signed note for balance.
This is what I did, but I know this is not correct because A/R are off.

Debit cash $3172.75
Credit A/R $3172.75
Debit Notes Recv. $3237.50
Credit A/R $3237.50

When I do this I have zero'd out my A/R and there should be a balance since customer did not pay invoice in full.

Please help, I losing my mind...

[morgaine300]

3172.75 isn't half of that invoice. If they paid half and gave a note for the other half, both numbers should be the same.

And no, there won't be a balance in A/R (for this customer), because they replaced the unpaid part with a NOTE receivable, which is a different account.

But otherwise it's correct.

As for the lost mind... I'll try to keep an eye out for it.

[RYK]

Thank you so much for all your help. I have been working on this problem for days and it just wasn't clicking. I haven't had accounting in over ten years and when I opened this book I thought, "Oh my Lord, what have I gotten myself into!" But then I found this site, ooh, I can't say anything but Thanks :-)

[morgaine300]

You're welcome. :-)