About Performing the Daily Audit

Typical notebook entries for the daily A/R audit are shown below.

 

Date

Prior A/R Total + A/R Control = Comparison = Today's Total

5/10

37,298.78 + 1568.12 = 38,866.90 = 38,866.90

5/11

38,866.9 + 3315.69 = 42,182.59 = 42,182.59

5/12

42,182.59 + 2300.15 = 44,482.74 = 42,967.59

 

In this example, the last day's total accounts receivable does not match the comparison figure. By looking at the A/R Batch Report, this dealer realized an Age-Only Trial Balance was not performed, so finance charges were not posted to accounts receivable.

 

After running the Age-Only Trial Balance, the finance charges, $1515.15, were posted to accounts receivable and the day's total accounts receivable is corrected.