Non-Trade Receivables
Definition: Receivables from non-customer sources
Scope:ModerateDifficulty:Moderate
Receivables from non-customer sources
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. File insurance claim | ||
| Fire damages $15,000 of inventory; claim filed. | ||
| Insurance Claim ReceivableAsset+ | $15,000 | |
| Loss from FireExpense− | $15,000 | |
| Non-trade receivable from insurer offsets casualty loss. | ||
| 2. Record tax refund due | ||
| Overpaid estimated taxes by $2,400. | ||
| Income Tax ReceivableAsset+ | $2,400 | |
| Income Tax ExpenseExpense− | $2,400 | |
| Receivable from government; tax expense reduced. | ||
| 3. Advance to employee | ||
| Employee receives $500 travel advance. | ||
| Employee ReceivablesAsset+ | $500 | |
| CashAsset− | $500 | |
| Non-trade receivable; settled via expense report or payroll. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
Insurance Claim ReceivableInsurance Claim ReceivableAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$15,000.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$15,000.00
Loss from FireLoss from FireExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$15,000.00
$15,000.00
Income Tax ReceivableIncome Tax ReceivableAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$2,400.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$2,400.00
Income Tax ExpenseIncome Tax ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$2,400.00
$2,400.00
Employee ReceivablesEmployee ReceivablesAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$500.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$500.00
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$500.00
$500.00
DurationShort & Long-Term
Related Subjects
Components
- Employee ReceivablesAdvances to employees are a common non-trade receivable
- Interest ReceivableAccrued interest is a non-trade receivable
- Income Tax ReceivableTax refunds due are non-trade
- Dividend ReceivableDividends receivable are non-trade
Related
- Other ReceivablesCatch-all for miscellaneous non-trade items
Contrast
- Trade ReceivablesNon-trade arise from sources other than sales
External Links
- Accounts receivable#Non-trade receivables — Wikipedia