Services or goods sold to third parties on credit (i.e., billed sales) should be recorded using the following method. A receivable, equal to the amount due from the third party, should be recorded in the general ledger (Ledger 0) account and a corresponding credit recorded in the appropriate Ledger 2 subaccount. When payment is received, it should be recorded in the receivable account to reduce the amount owed by the third party.

It is the responsibility of the operation to see that billed sales are collected, detailed receivable records are kept, and those records reconciled to the receivable account control (13xx) in the general ledger (Ledger 0). At fiscal year end, the collectibility of each individual receivable should be reviewed. Receivables considered uncollectible should be written-off against the cash revenue subaccount in subsidiary Ledger 2. Accounts receivable write-offs are not allowed by OMB Circular A-21 and, therefore, cannot be included in the rate. The sponsoring department must transfer funding to the recharge operations Ledger 2 account to cover any bad debt expenses.

A detailed list of transactions follows: