Allowance for Doubtful Accounts

This account reconciliation is an Asset account type and a Calculated Balance reconciliation type. This type of reconciliation is used when a detailed calculation is used to determine or substantiate the balance in the General Ledger.

In this example, the calculation follows specific rules determined by company policy.

Note the detailed description above about how the calculation should be made and what reports are used for the source information. The Supporting Document section shows that copies of both the Aged Trial Balance and the calculation prepared by Jordan Cummings are attached.

The reconciliation has been Prepared, Approved and Reviewed as noted by the appropriate staff members. The detail of the reconciling item is shown below.

This item has an Open Date of 12/31/2010, and the Close Date is blank. When the reconciliation is opened to perform the 1/31/2011 reconciliation, this item will appear. If the item has been recorded in the General Ledger during January, you will be able to enter a Close Date with a January 2011 date, and the item will disappear from the 1/31/2011 reconciliation.

This particular account is reconciled with no Unidentified Difference. The journal entry mentioned in the Reconciling Items is clearly an error, but it has been identified and documented.

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