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FORM "G"
102 This is a record showing the amount of CONTRACT 1
PAYMENTS applied. Entries are obtained from correspondence and other sources such as the cut-off sheet, (form No. 153) which shows the date when a contract expires, etc.
As soon as such information is received, the bookkeeper makes a notation on a working sheet of form "G." The form itself is finally made up on Friday, giving all contract payments applied during the current week.
103. Contract payments are to be applied as the contract expires in accordance with its terms. A contract payment may also be applied in satisfaction of any claim we may have against the customer's account. It must be remembered, however, that to apply a contract payment on an account which is still active with us does not necessarily mean a satisfactory solution of the difficulty, since we require that a contract payment be maintained by every active account until the contract has expired. Consequently while a debt may appear liquidated by applying a customer's deposit you defeat the very purpose of the rule (to obtain a contract payment for every account) if the bookkeeper is allowed to apply it in order to avoid the necessity of following up an outstanding bill.
104. When a contract expires, the contract payment is applied as a credit against the charge resulting from the last service rendered under the contract.
For purposes of analysis, care must be taken to show on form "G" clearly the amounts to be applied to releases (giving their numbers), war tax, accessories, express charges, etc.
The credit entered on the account of an exhibitor from form "G" is the same as a cash item and should be analyzed accordingly.
105. As a contract payment is given on account of a particular contract or series, it is preferable to liquidate charges arising from the same contract when applying it.
However, a contract payment may be transferred to any other series as the occasion demands. Such transfers are made on form "H' and will be discussed later.
106. The contract payment is posted in the ledger (in black ink) from the cash book crediting the account in the special column set aside for this purpose.
Before you apply a contract payment (in red ink in the special column of the ledger) it will be necessary to
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