When the number of claims on file is large, there should be another record which will show the amount of claims outstanding against each railroad. Of course, the card file gives this information, but some of the cards are very likely to be out of the file, so that the amount obtained by a recap of the cards at any time may not represent the correct total. An account with each railroad can be kept on a card, as shown in Fig. 14. This card should be filed with the claim cards, immediately behind the guide card of the road. In effect, it is a ledger account, representing a contingent asset. From an accounting standpoint, the proper method is to charge all claims to a claim account, crediting whatever account may be affected, at the same time charging the railroad on the card referred to above. If an overcharge has been paid on a shipment received, the entry would be: Claim Account $_____ In Freight $_____ [Illustration: 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 $_____ [Illustration: 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. EXPRESS SHIPMENTS Many business houses are selling classes of goods which are most successfully shipped by express. This is especially true of those houses that transact the larger part of their business by mail. The question of shipping by express is, in itself, quite simple, but there are numerous details connected with the handling of such orders which require close attention. While these details vary in different businesses, as a typical illustration the business of selling books by mail has been selected. When an order is received, the first step is to check the source--whether from circularizing, a re-order, or periodical advertising, and if the latter, the name of the publication. This information should be entered on the original order.