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View Full Version : Recording gain from legal settlement


Zaphod2009
Jan 7, 2009, 02:31 PM
Recently we settled with a client, leaving me with an AR credit I'm entitled to keep. Entries so far are:

dr. AR 1000
Cr. Sales 1000

dr. Cash 1200
Cr. AR 1200

Would it be more appropriate to resolve the 200 AR credit by:

dr. AR 200
Cr. Sales 200

Or

dr. AR 200
Cr. Misc income 200

?

codyman144
Jan 12, 2009, 10:37 PM
Misc income In my opinion