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The Complete Idiot's Guide® To Accounting by Lita Epstein, Shellie L. Moore

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Temporary Posting Journal

Some businesses also work with a temporary posting journal. This journal is used when a check has been written to pay a bill on time, but full details for how that check should be allocated and to which accounts are not yet known.
For example, this happens commonly when a business uses an outside payroll service. Frequently a check must be written to the payroll service before full details about the payroll are available. The accounting department definitely wants to record the cash disbursal, but may not yet be able to prepare entries to the accounts that will be affected.
The transaction would be posted to an account called Temporary Distribution (9999). After the full details are known, adjusting entries will be ...

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