As an example, assume that you keep your books on the cash basis, but your financial reporting and tax return are done on the accrual basis. You add up your accounts receivable ledgers and find that your total receivables are $16,500 on December 31, 2011. Your accounts receivable balance on December 31, 2009, which is currently shown in your general ledger, was $13,950. You need to make the following adjusting entries to update your year-end accounts receivable balance: