Assume the bank pays $1.50 registered and insured mail charges for a customer and awaits his remittance to cover. The general ledger entries at the time the payment is made by the bank should be:

On receipt of the remittance or authorization to charge the customer's account, the entries are:

Auxiliary Records

In those banks where items of this nature become rather numerous, it is well to establish an auxiliary record of these accounts receivable items showing the detail of these charges in columns somewhat as follows: (1) Date; (2) Customer; (3) Debit; (4) Credit; (5) Balance; and (6) Date Paid (that is, date on which customer repays the bank). The total of the items appearing in the balance column of this auxiliary record should at all times agree with the balance of accounts receivable on the general ledger.