Best method to post a $80 write off

Posted by Meebers on September 6, 2009, 5:39 pm

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We have a customer who we had filed a cumulative $315.00 lien against. The
customer paid us $235 (which satisfied one part of this lien) and we filed a
satisfaction of the total lien in error. Now we have to "eat" the $80.
Appreciate best method of documenting this error. TIA

Posted by Haskel LaPort on September 7, 2009, 4:53 am

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> We have a customer who we had filed a cumulative $315.00 lien against.

> The customer paid us $235 (which satisfied one part of this lien) and we

> filed a satisfaction of the total lien in error. Now we have to "eat" the

> $80. Appreciate best method of documenting this error. TIA

What accounting basis, cash or accrual does your company use?

Posted by Laura on September 7, 2009, 8:29 am

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>> We have a customer who we had filed a cumulative $315.00 lien against.

>> The customer paid us $235 (which satisfied one part of this lien) and we

>> filed a satisfaction of the total lien in error. Now we have to "eat"

>> the $80. Appreciate best method of documenting this error. TIA

> What accounting basis, cash or accrual does your company use?

And is there any Sales tax that needs to be adjusted?

Posted by Haskel LaPort on September 7, 2009, 10:06 am

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>>> We have a customer who we had filed a cumulative $315.00 lien against.

>>> The customer paid us $235 (which satisfied one part of this lien) and we

>>> filed a satisfaction of the total lien in error. Now we have to "eat"

>>> the $80. Appreciate best method of documenting this error. TIA

>> What accounting basis, cash or accrual does your company use?

> And is there any Sales tax that needs to be adjusted?

Most sales tax jurisdictions do not allow for bad debt adjustments.

Posted by Meebers on September 8, 2009, 1:56 pm

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>>>

>>>> We have a customer who we had filed a cumulative $315.00 lien against.

>>>> The customer paid us $235 (which satisfied one part of this lien) and

>>>> we filed a satisfaction of the total lien in error. Now we have to

>>>> "eat" the $80. Appreciate best method of documenting this error. TIA

>>>

>>> What accounting basis, cash or accrual does your company use?

>>>

>> And is there any Sales tax that needs to be adjusted?

> Most sales tax jurisdictions do not allow for bad debt adjustments.

It is cash basis, no sales tax, followed the example in "help" and added a
"bad debt" account as an expense, transfered the $80 to that account, the
main customer account now lists the corrected amount. While looking at the
list of accounts/bad debt, it shows no amount...I am thinking it should show
the $80.?? If I double click the bad debt account, the transactions shows.