What is the correct way to record Subleased rent?

We currently just subleased our office space that we moved out a few months ago.  We pay the rent in full $8,000 and our subtenant pays us $4,000 each month with a $4,000 security deposit.  My question is what is the correct way to post the rent received each month.  I pay the $8k and post to rent expense.  I receive the $4k, can I just post this to rent expense or do I make a new account for Rental Income? Do I have to make a Sales Receipt each month even if the subtenant doesn't need an invoice each month? They pay by auto ACH. I did make a Other Current Liability account to post the Security Deposit. Thanks for your help!

Answer

You do not reduce your expense directly. What you receive in rent is posted as income. Since your monthly net is a negative 4k you will have a 48k loss on this particular enterprise. 

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