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Classification of the Collection of the Given Debt in QBO

Forum|Forum|3 years ago
November 10, 2022
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Hello,

The debt we gave from the company account was paid back to us. But I am unsure how to categorize the amount sent to our bank account. For example, should the appropriate amount be recorded as income?
Briefly;
We lent money from the company account and got our money back. How should I categorize the cash coming into the company account?
Should I record it as a "Recovery of Debt" under "Other Income"?
Is the repayment of the given debt an income?

Note: It is not bad debt.

I request your help.

Kind regards.

QuickBooks Online

Best answer by Rustler

When you loaned out the money, that should have been an entry to an asset account you created called something like "Due in"

when you get paid back, it is a deposit and use that same asset account as the source account for the deposit

When you loaned out the money, that should have been an entry to an asset account you created called something like "Due in"

when you get paid back, it is a deposit and use that same asset account as the source account for the deposit

Ugur01Author

Thanks, Rustler, for your answer,

But can we elaborate a little on the subject?

Does the link below meet the solution you mentioned?

https://quickbooks.intuit.com/learn-support/en-us/help-article/service-items/track-customer-loans/L4hR3EYib_US_en_US?uid=lab41bla