The writer does not know of a more economical or efficient system of handling the bug-a-boo of “getting out our monthly bills” than that just described. Sometimes, a “duplicating bill-book” is used, but it is a wasteful and inefficient method when compared to this. One of the principal advantages of the system lies in the fact that it is unnecessary to keep a private ledger account for any of our charge customers. If we were to do so, we should simply repeat information that we already have. It will be remembered that we have filed away our triplicate record of each day’s charge sales, which record describes in detail the particulars of every sale made on that day. From this, should the necessity arise, we can reconstruct our whole charge sales record for the month. We have also on file (until the bill is paid) another copy of each charge sales slip, filed according to the names of customers, which, in itself, constitutes one side of the ledger account that would be kept under the old system. These, together with the records previously described, amply warrant the abolition of customers’ private ledger accounts. Another great advantage of this system lies in the ease and rapidity with which the books can be closed at any time.
Attention is invited to the note at the bottom of Form 1. This is a labor saving item that is in accord with the practice of many up-to-date houses—to regard a canceled and endorsed check as the best form of receipt. Hence, if a customer pays his bill by check, it is unnecessary to receipt the bill and return it to him, our endorsement on his check constitutes his receipt. This same procedure can be made to apply to companies, etc.; also, if the company commander will use the sales slips as his sub-vouchers for the expenditure.
We shall now take up the procedure to be followed in recording any and all credit which we allow to customers for overcharges, goods returned, etc. It is apparent that such transaction must occur in any business. Accurate track should be kept of them and they should be handled in the most efficient and time-saving manner possible. Each such transaction results in a credit against our Bills Receivable and a charge or debit against the particular department involved.