Double-entry bookkeeping 2: books of prime entry, accounting systems
. The trade receivables balance at the start of an accounting period is posted to the debit side of the trade receivables control account.

. Irrecoverable debts are an expense and so are posted to the debit side of the trade receivables control account.

. Opening trade receivables brought forward + sales invoices issued – credit notes issued – cash paid – irrecoverable debts = closing trade receivables carried forward.

. The allowance for receivables is a credit entry to the trade receivables control account.

. The trade receivables control account and the sales ledger work together to ensure the accuracy of the trade receivables balance in the statement of financial position.