1. The closing balance of the previous period is taken as the opening balance of the current period.
2. A carry-forward account is opened in the accounting books and the closing balance of the previous period is transferred to the carry-forward account.
3.Record the amount owed and the amount collected in the current period in the accounts receivable accounts receivable and accounts receivable accounts receivable accounts, respectively, and calculate the net amount for the period.
4. Transfer the net amount of accounts receivable for the period to the income account and the carryover account of accounts receivable, respectively.