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Statement of Account

Purpose: facilitate collection of accounts receivable

File Name: STATMENT

Format: Single Page, 1 Part or multi-part

A statement is a form which can show both you and your customer outstanding balances on the customers account. The statement accomplishes this by acting as a running total of credits and debits to the customers account. When a customer first places an order on credit, a statement is generated by the accounting department with the customer's name and address, terms and salesperson's name. The credit invoice becomes the first line of the statement, and the outstanding balance becomes the statement balance.

As payments are made, or as additional credit sales occur, these transactions are added to the statement, and the balance owing is updated as well. Many companies will generate a new statement for each customer monthly or quarterly, bringing forth the "Balance Forward" from the last statement as the first item on the new statement.

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