Recording of accounts receivable/notes receivable

-Account in which to record transaction with the customer/borrower should be open

Statement of accounts
-From what you have document, recorded and aged, statement are prepared
which maybe:

A. Monthly statement
Is usually used as basis for payment.
B. Detailed statement
When a customer/borrower wants to know how much balance he or she
has
C. Reconciled statement
Upon receipt of these statement, the customer/borrower may disagree
with the balance
or make exception in which case reconciliation is requested

Chapter VIII
MONITORING AND CONTROLLING THE CREDIT AND COLLECTION FUNCTION
The following accounting documents are the minimum required to assist the
credit department in performing its function:

1. Aging of account receivable

This document is required monthly either typed or computer-run

2. Statement of account
For each account being the balance will be prepared monthly and
forwarded to the customer under the supervision of the credit and
collection department.

This may be prepared either;

A. In terms of amount (peso-wise)
B. In terms of number of account (credit-wise)

Several variation of the aging analysis can be made to suit the individual needs of the
company, such as;
A. Per branch outlets
B. Per product lines
C. Per dealer
D. Per regional or collection areas
E. Per extent of credit and collection control

Analysis of receivable
In addition of the aging of accounts receivable previously described, the analysis
of receivable includes the computation of an account receivable turnover ratio and the
presenting of other reports which are designed to reflects activity and the efficiency of
the credit and collection function