Escrow Refund Check
I have set up an other current asset acount titled: Escrow. Each month, I break out the mortgage payment and I debit mortgage: Interest, mortgage: principal, I debit this escrow account and credit my checking account for the total mortgage payment to the bank. When I receive a refund from the mortgage company for an overpayment, do I credit this escrow account? My confusion lies in that in the detailed statement received from the bank, there is no record of payments paid (escrow shortage) or payments received (escrow refund).
