Fig. 14. Claim Account Card
When a claim is disposed of—paid or rejected—claim account receives credit, while the debit is to cash, or the account originally affected. Using the above illustration, if the claim is paid in full the entry is:
| Cash | $_____ |
| Claim Account | $_____ |
If the claim is rejected:
| In Freight | $_____ |
| Claim Account | $_____ |
Fig. 15. Register of Sales
Thus the claim account is a controlling account, the balance representing the total claims outstanding, and agreeing with the totals of the claims against the different roads as shown by the cards. Claim account represents a questionable asset, and should be so treated in the balance sheet, a liberal discount being made in the value represented by the account.