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Sonny209
January 19, 2023
Question

credit line finance charge adjustment

  • January 19, 2023
  • 1 reply
  • 0 views

hi, 

i need help figuring out how to record finance charge adjustment in my credit line ,, my credit line account is setup as liability account.  it doesn't let me record as interest income and i cannot record as expense because then it goes to the charge side.  Please advise. thanks

 

 

1 reply

D
docsbp29
February 28, 2023

It's not interest income it's interest expense. If the bank adds the finance amount to your loan balance increase the loan amount in the loan register using the account interest expense. If the bank deducts it the fee from your checking account or you send them a check use interest expense account in the check register.

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