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 an account control in the 1300-1399 range of the recharge operation Ledger 0 account. A corresponding credit should be recorded in the appropriate Ledger 2 account. When a payment is received, it should be recorded in the receivable account to reduce the amount owed by the third party. Cash received at the time of the sale may be recorded directly to the Ledger 2 accounts.

It is the responsibility of the operation to see that billed sales are collected and detailed receivable records, those records which identify the debtors, are kept and 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. Those considered uncollectible should be written-off against the cash revenue subaccount in Ledger 2. See the Cash Reserve from External Sources and Bad Debt Expense Funding sections for related information on bad debt accounting. See Appendix D, Recharge Operation Accounts Receivable Accounting Protocol for more information.