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    Zaphod2009's Avatar
    Zaphod2009 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 7, 2009, 02:31 PM
    Recording gain from legal settlement
    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's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Jan 12, 2009, 10:37 PM

    Misc income In my opinion
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