My employer forgot to enter a $400 credit charge for 2006; also, that entire year of charges was left un-reconciled to this day. However, 2007 - 2011 are all reconciled. NOW, that $400 shows up as a -400 for a balance. Employer would like this -400 to disappear! Help!...rosel
I would guess that all you can do at this point is a journal entry to zero it out, but be sure to list the customer so it doesn't affect your A/R.
I'm sure Ms. Dodee this would solve my problem, but would you be able to step-by-step me through a journal entry? I'm not too sure about that process....and THANKS for such a prompt response!...rosel
Company/Make General Journal Entries
Under Account; debit accounts receivable, and credit the account that the original credit was for. Put the customer name under name that the credit is for...This would zero it out. I hope this explains it well enough.
Hope this helps...if you need additional info please let me know!
Dodee,
The orginal problem was that this 400 was never entered into charges, but it was "paid" in the billing process by us. So, now, when I did that journey entry, it placed 400 in the charge column with 400 in the payment column, but you see, the 400 was never listed in 2006, but the bill for all the other amounts including the 400 was paid in full, thus the negative 400 appearing in the balance column. It seems like I just need the 400 placed in the charge column (which would bring the balance column NOT a negative number). So sorry for such a mixup!!...me....rosel
@ Rosel
That -400 is acting like an overpayment, the only way to get rid of it is as an expense, or post it to owners drawing.
if you choose to expense it, it is not deductible in this years financials, so create a special expense account to book it to. Something like non-deuctible-expense, this is the same kind of treatment you would make for a tax fine - fines are not deductible.
If it were me I would post it to owners drawing.
Thanks, Rustler
I don't know what owner's draw is, but I'm willing to learn. My employers are gone for the day. I'll ask them when they return. So, thanx for response. I appreciate it. Have some happy holidays....rosel
