If a customer was invoiced for 14,000.00 and the amount hit my contributed income account (I can't make adjustments to this account). We rec'd tHe payment and was deposited and recorded. My supv. Now wants apply it to administrative fees (income account). What kind of journal entry should I make?

Would it be correct if I debit the admin. Fee account and miscellaneous income account?

The right answer is to debt contributed income and credit admin fees. Why can't you do a JE to contributed income?

If that is impossible I would create a contra account for contributed income and debt it and then credit admin fees. Again why can't you debt contributed income? Another possibility is to reverse the cash batch that had the deposit on it and put the deposit to the right account to begin with. Not sure what kind of system you are working with here so that is the best I can offer without more info.

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Originally Posted by codyman144

The right answer is to debt contributed income and credit admin fees. Why can't you do a JE to contributed income?

If that is impossible I would create a contra account for contributed income and debt it and then credit admin fees. Again why can't you debt contributed income? Another possibility is to reverse the cash batch that had the deposit on it and put the deposit to the right account to begin with. Not sure what kind of system you are working with here so that is the best I can offer without more info.

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Yes. Thank you... your answer is correct. I am using Quickbooks. For some strange reason, when I created the invoice for 14,000.00 back in August, contributed income and conference room are my only two options (setup by our accountant). When I looked at the general ledger for the month of August (the 14,000 was tied to reimbursed income (I don't know why). So, I debit reimb. Income (aka contrib. income) and credit admin. Fees and everything balanced out for October...