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mrssammons77
May 27, 2021
Question

A/R Purchased in Sale

  • May 27, 2021
  • 1 reply
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My company has sold a division of the business. Originally, the plan was to continue collections on outstanding A/R but it has since been decided to transfer the outstanding invoices as well. The transfer is completed. What is the proper way to account for this transfer? The proceeds of collections will remain with the purchaser and the purchase price has not changed. 

1 reply

Rustler
Rustler
May 28, 2021

Create a service item called transfer which is linked to the expense account you use for the sale of the company property. Use that item on a customer credit memo per customer and apply the credit to the outstanding invoices.

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