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My accountant wants me to do an adjusting entry to accounts receivable 120000 which is in my chart of accounts and says (Mandatory) behind it but it won't let me do it in the general journal
Hi Janice!
Getting through this is going to take a bit of a process, but here is how it will work:
1) Go to Setup > Chart of Accounts. Create account 1201 (if you don't already have it - if so, pick an account number that is available) as an Asset, and call it Accounts Receivable - Year End.
2) In the general journal, post the entry your accountant gave you, replacing account 1200 with account 1201. Record the entry.
3) Now go to the Transaction Entry screen. At this point, you need to transfer the balance of 1201 into 1200. How this is done depends on the entry that was made.
If your accountant DEBITED accounts receivable, then you are going to change your Transaction Type to Receivable Charge. You may or may not know what customer he is referring to. You can set up a customer called Year End Adjustments if you don't know. The total will be the amount that the accounts receivable needs to be debited. Change the Type to A-, and select account 1201. This will balance your transaction. Click on Record.
If your accountant CREDITED accounts receivable, you absolutely MUST know which customers he is reducing the receivables for. You will create a withdrawal, with the total showing 0.00. The first line will be the A+ line, with the amount being the amount of the credit. The second line will be an RP, and you will select the customer that you need to reduce your receivable for. Put a checkmark on the right side of the invoice(s) you need to get rid of. Close this screen, make sure the transaction is balanced, and click on Record.
It seems like a big process, but it really isn't too bad. If you need further clarification on this process, feel free to give me a call at 1-800-667-7893 and I can walk you through this process.
Thanks!