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