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Shannon83
September 1, 2022
Question

Credit Card Interest Refunded

  • September 1, 2022
  • 1 reply
  • 0 views

Hello again!

I have searched but I have not found an answer that seems to work. My question is pertaining to Credit Card Interest being refunded by the Credit Card company. 

We were erroneously charged interest fees on two of our cards. After determining that it shouldn't have been charged, the original charges were reversed by the CC Company, but it wasn't for two billing cycles. 

I need to figure out how to account for this. I thought by making a general journal entry, it would reverse it for me, but now the interest charges that were reversed are showing up in my Unpaid Bills Report. Which obviously they shouldn't be. 

The journal entry that I made was:

Visa Account    (dr) $$

      Accounts Payable       (cr) $$ (Name is Visa AP)

This made it so that I could reconcile my cards yesterday, so I'm worried about changing anything that will change those reconciliations also. Any help is very much appreciated. 

 

Thank you

 

Shannon

1 reply

A
Amanda-B
September 1, 2022

Hey there Shannon83,

 

Thanks for reaching out to us here. Making sure you're recording your transactions properly is an essential step for maintaining clean books. I can point you in the right direction.

 

 To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. you can find an accountant here if you do not have one already. 

 

If you have any other questions, feel free to reach out to us here.

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