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!