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Mar 13, 2022 5:14 PM UTC
Question

Certificates of deposit

What account type should I use for a CD? 

 

When it matures, how do I zero it out?

4 replies

BigRedConsulting
Mar 14, 2022 10:40 PM UTC

Well, it's an asset, more or less same-as-cash, so it should either be an asset or a bank (cash) account, I'd think.

When you're paid the principle and interest at the end of the term, transfer the amount you received to whatever account you deposited it into.

mcseniorsAuthor
Mar 16, 2022 12:30 PM UTC

Thanks for the feedback. In Account Type," I decided to make it an "Other Current Asset."