Our business made a loan in 2021 and recorded it as A/R (Loan to...). When the principal amount is repaid how do we correctly record?

Good morning, @wbaker. 

Congrats on making your first post here in the Community. I hope your day is going well so far. Allow me to point you in the right direction so you can record this correctly. 

To be sure on how to record this correctly, I suggest consulting with your accountant. They'll be able to give you the best accounting advice for your business. 

Feel free to reach back out if you have any other questions. I'm only a post away if you need me. Take care!