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
?
