PDA

View Full Version : Insurance settlement


rdr
Jun 17, 2006, 09:41 AM
Our retail business had a fire with $80000.00 in damages and only received $40000.00 from the insurance company. How do I record the damage, the check from the insuance company and the loss. Thanks for your help.

CaptainForest
Jun 17, 2006, 12:43 PM
Dr. Cash 40,000
Dr. Extraordinary Loss 40,000 (this number will be an expense that goes on your income statement)
Cr. Inventory (or whatever it was that was lost) 80,000