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I received a check from a freight company which pays off a claim against damaged goods they delivered.
The check covers our inventory which was damaged, the labor hours it took to remove and repackage inventory into new boxes, cost of new boxes, and payment of shipping costs.
I am not how to enter the deposit into our checking account so that this does not reflect income to our company.
The amount of the check is $3379.37
Labor $588.65
Damaged Goods$2192.42
Packaging and Freight Damage $598.30
Just need to know which type of GL accounts should be D/C?
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I have the same question (0)Hi Linda,
Your question is really an accounting question and should most likely be posed to your accountant. We can explain the software, but when it comes to income recognition, that is outside the scope of our community. I do not know your basis in the goods that were damaged, but the entire transaction needs to be considered. As far as receiving money from a vendor without it impacting the vendor's account balance - I can help with that.
On the payables trx entry window use the document type of Return. Fill out the form such that the Total on the left side is $3379.37. Put $3379.37 in the Check field on the lower r-h corner of the window.
The check will go into your Checkbook without leaving any dangling balances.
Kind regards,
Leslie
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