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Hi I work for JP Morgan chase . In JP Morgan we use accounting softwares to prepare financial statements all the times.
there are some restriction on making General Journal Entries to Accounts Receivable (A/R) and Accounts Payable (A/P) accounts.
Normally, the preferred way to change the balance in an A/R or A/P account is by recording transactions, such as customer invoices or vendor bills. However, sometimes it’s more convenient to make a General Journal Entry. A common use of General Journal Entries to A/R or A/P accounts is to set up customer or vendor balances in a new QuickBooks company file.
If you opt to make a General Journal Entry to an A/R or A/P account, such entries are subject to these restrictions:
- You can’t use more than 1 A/R or A/P account in a single journal entry
- You must enter a customer name for a General Journal Entry to an A/R account and a vendor name for a entry to a A/P account.
When we record a General Journal Entry to an A/R or A/P account, the General Journal Entry will appear in the transaction list for the customer or vendor specified in either the Customer Center or Vendor Center – provided that the A/R or A/P account is on the first line of the general journal entry and is therefore the transaction source.
so generally we prepare general journals first.
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