Accounting for debtors ...

Let's consider the new recording and reporting in relation to debtors

1.  Recording

Document.  The documentary evidence of a credit sale is an Invoice.
Stock card.  Same as cash sale but use Invoice in the details column not Receipt.
Journals.  Use Sales Journal (or Credit Sales Journal) for debtor invoices.
Debtor receipts:  The Cash Receipts Journal will include a Debtor or Debtors Control column.  This will record cash received from the debtor plus any discount expense that the debtor has taken advantage of.  There will also be a discount expense column to record the discount taken by the debtor.  This column, like the Cost of Sales column, is a non cash item. Discount expense is cash that was not received.  Remember that!
General Ledger.  Will include Debtors Control ledger account which is a summary of all debtor transactions.  Think summary or total account for debtors.
Debits will be any opening balance and sales/GST clearing.
Credits will be Bank/Discount expense and any bad debts.
Debtors Control is a key account so remember these debits and credits.
The Trial Balance will include Debtors Control.
Debtors Subsidiary Ledger.  This is a ledger just for individual debtors.  Remember to use the specific date of the transaction in the DSL.
Debtors Schedule.  This shows the individual debtor balances and the total which should equal the balance in the Debtors Control Account.

2.  Reporting

Cash Flow Statement.  Receipts will include debtor receipts.  This will be the total of the Debtors column in the CRJ less any discount expense.  Remember that!
Income Statement.  Revenue will include both cash sales and credit sales.  Sales are recorded and reported at the point of sale regardless if cash is received at that point or not.  This is a good example of accrual accounting.  Cost of sales will include the cost of cash sales and the cost of credit sales.  By convention, this is shown as a total.
Other expenses associated with debtors are bad debts and discount expense.
Balance Sheet.  Debtors will be reported as current assets as they represent a future benefit that will be received by the business within 12 months (usually 30 days).