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ambermarie24
Oct 26, 2009, 05:55 PM
I am completely stumped on this journal entry.

How would you journalize

"Recieved $3325 from American Express Co. after a $175 collection fee had been deducted"

I know you would debit cash for 3325 and debit credit card expense for 175, but what account would you credit for 3500?
Nina4B
Oct 26, 2009, 06:02 PM
Not sure, but i believe it would belong to the Accounts Receivable.
morgaine300
Oct 26, 2009, 11:04 PM
Yes, it would be accounts receivable. If American Express owes you money from credit card charges, that is no different than when anyone else owes you money. And that is accounts receivable.