Hi I am an Independent contractor that assist small businesses with bookkeeping and administrative needs. Recently I aquired a client that needs me to help him with his bookkeeping. He actually hasn't made any entries for 2006..

He is currently using a company that purchases his A/R. He submits his invoice to them, they wire him 90% of his receivables, charge him 1.5% on the total amount and keep 10% in a holding account until customer pays invoice then they release funds. Unfortunately In the past he hasn't had a consistant method of recording these transactions.

Can anyone suggest what would be the proper entries to make. This is the first time I have had to deal with this type of method of payments. We are currently using QB 2007 Pro.

Thanks in advance
Sylvia