General Ledger Posting ~ Customer Payment

Lets say that you sold a range to a customer for $500.00. Sales Tax is 10% which calculates to $50.00.

First Step: Customer hands you a Payment
                                                Debit            Credit
Petty Cash Accounts            $550.00   
Customer Holding Acct                                $550.00

Second Step: Verify that the person responsible for the deposit has received the payment. (i.e. Not left on someone's desk)
                                                Debit            Credit
Customer Holding Acct        $550.00
Accounts Receivable Acct                         $550.00
Therefore we now have $550.00 in Petty Cash and a Credit Balance of $550.00 in Accounts Receivables. Customer Holding Acct is at Zero.

Third Step: Bank Deposit or Credit Card Settlement
                                                Debit            Credit
Petty Cash Acct                                            $550.00
Bank Account                        $550.00
Therefore we now have $550.00 in Bank Account and a Credit Balance of $550.00 in Accounts Receivables. Petty Cash Acct is at Zero.

When we create a Customer Sales Invoice, it will Debit Accounts Receivable $550. Therefore Accounts Receivables will be at Zero. see General Ledger Posting ~ Customer Invoice