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December 2, 2019
Question

how to do an insurance agent's journal entry for a sale

  • December 2, 2019
  • 1 reply
  • 0 views

 I need to make sure I am doing the journal entry right. Currently she sells the insurance then the broker bills her for the premium minus her fees and commission how would this booked??

This is how it has been being done, is it correct?

Client invoiced $2000

Debit $2000 Bank
Credit $200 commissions - via sales receipt 
Credit $1800 Broker Fee 
Payment to Insurance Agency

Debit $1,800.00 Broker Fees (Or Premiums)
Credit. $1,8000 Cash (wire to agency)

1 reply

asha_kanta_sharma
October 24, 2021
This seems fine to me.


Thanks