How would I accrue these credit card expenses?
I have a credit card where the balance was put at $4000 for dental work. I make payments from my bank account every month. I would like to that $4000 to be accrued based on each month as an expense to dental to have a more accurate representation of my expenses each month. I'm not sure how to categorize the $4000 portion so I just called it deferred dental for now.
I then did a journal entry for each month matching the payments: debit dental expense $222 and credit deferred dental $222. This worked fine on the monthly P&L showing exactly what I was looking for but cancelled out the credit card balance on the balance sheet.
I'm lost and haven't been able to find the answer online yet so any help would be appreciated!