How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Cassandra Your Own Question
Cassandra, Tax Preparer
Category: Tax
Satisfied Customers: 306
Experience:  8yrs experience in taxation for individuals. CTEC Registered and an Authorized E-filer with the IRS
Type Your Tax Question Here...
Cassandra is online now
A new question is answered every 9 seconds

Im doing bookkeeping for a friend. He has sales

Resolved Question:

I'm doing bookkeeping for a friend. He has sales invoices and bank statement deposits. He cares no A/R's. Do I debit suspense and credit sales. Debit Checking account and credit suspense account? Sometimes I might have a credit or debit differences? How do I handle the differences? Is there another way to handle this?
Submitted: 9 years ago.
Category: Tax
Expert:  Cassandra replied 9 years ago.
helloCustomerand welcome to just answer

A suspense account really should not be used, as you will eventually make your problems worse. You need to figure out what the suspense is. If you are talking sales, then you would debit cash in if it was paid at the time of the sale, and credit sales. If you are using the suspense account in place of an A/R account then I would recommend setting up a A/R account instead of suspense account. You should never have a credit or debit difference, you need to make them balance in one way or another.
Cassandra and other Tax Specialists are ready to help you