Accounting for Security Deposits
Nancy - Question regarding the accounting for Sec. Deposits:I currently have the deposits recorded as a liability. When the tenant moves out, and has a balance owed, I create a general journal entry to record the use of the security deposit and the offset of the journal entry is to the A/R for that particular tenant. Question is: why does QB show the adjustment in the A/R of the balance sheet at year end as a negative, when I am using the Security Deposit to pafor the outstanding invoice? I am applying the deposit wrong?