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Strategies & Market Trends : ACRT going to Zero -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (16)	2/4/1998 7:30:00 PM
From: John Chew	Respond to of 320

Accounting Procedures for the TAD Program When Customer Pays with TADs (Sample based on a sale of $10,000 with a discount of 3%. 1. When you complete the Sale. You Issue an Invoice for Goods and Services as you normally would: Debit: Accounts Receivable/Customer Name $10,000 Credit: Sales for the full amount of the Invoice 10,000 2. When You Receive TADs from Your Customer. Debit TAD Receivable/Customer Name 10,000 Credit: Accounts Receivable/Customer Name for the 10,000 Full Amount of the TADs 3. When You Sell The TADs to Actrade Capital. Be sure you have a receipt from Actrade. This receipt is the basis for all accounting procedures: Debit: Accounts Receivable/Actrade Credit: TAD Receivables/Customer Name 10,000 For the full amount of the TADs 10,000 For the Finance Charges: Debit: Finance Expenses 300 Credit: Accounts Receivables/Actrade 300 For the discount amount as appears on your receipt, reference the receipt number. 4. When Payments are Received From Actrade. The entries in your books should be as follows: 75% Advance Payment- Debit Bank Account $7,500 Credit Account Receivables/Actrade $7,500 Balance payment of (25% reserve - fees) Debit: Bank Account 2,200 Credit Account Receivables/Actrade 2,200 Buyer Accounting Procedures When Using TADs (Sample purchasing for $10,000 to be paid in one installment) 1. When Purchasing. You receive an Invoice for Goods and Services as you normally would Debit: Purchases (or Cost of Goods) $10,000 Credit: Accounts Payable: Vendor Name $10,000 2. When Delivering TADs to the Vendor. Debit: Accounts Payable/Vendor Name 10,000 Credit: TAD Notes Payable (By due date) 10,000 3. On TAD Due Dates. On the due date TADs will be debited to your bank account like a check. Debit: TAD Notes Payable 10,000 Credit: Bank Account 10,000