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-   -   Customers balance due used as a credit for our a/p to them (https://www.askmehelpdesk.com/showthread.php?t=103264)

  • Jun 21, 2007, 04:54 PM
    outofbalance2
    Customers balance due used as a credit for our a/p to them
    How is this entry completed.

    Our customer xyz company owes us $1000.00 which of course is in our A/R, We in turn owe xyz company 250.00 which is in our A/P. The owner decided to tell xyz company to subtract what we owe them and mail a check for the difference and call it even...

    Accounting wise how is this handled?:
  • Jun 21, 2007, 05:33 PM
    CaptainForest
    Once you receive the cheque…

    Dr. Cash 750
    Dr. AP 250
    Cr. AR 1,000

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