Credit Card Charges


(Cinti)

If something is charged in December of 2010 and the charge card is paid later with a check in January of 2011 Is it deducted on 2010's taxes or 2011's. I am on a cash basis not accural

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CREDIT CARD FEES

SHOULD CREDIT CARD (MERCHANT) FEES BE AN EXPENSE OR PUT INTO COST OF GOODS SOLD ACCOUNT?

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Credit Card Transaction

Hi, I am a bit confused on how to treate such a transaction.

Credit card was used to purchase some goods.
But the invocie has not been received yet.

It's the month end and I need to close the book.

So far, I have accrual them. is this correct?

The issue is that the credit card account won't be reconciled. becasue I am doing

Journal entry
Dr expense
Cr accrual

What is the best way to handle this situation?

P.S Let's say it's not possible to get the invoices


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Credit Cards

I am a new bookkeeper doing books for a new client that has not done any bookkeeping since she opened her business in April. This client received a business credit card and has it maxed out already. How is this entered into the business and what accounts do I use as it has to be paid off in payments?

Hello, thank you for your question. You will need to set up a credit card account in the chart of accounts.

Whenever an expense is charged through the credit card the expense account will be debited and the credit card account will be credited.

When you make payments towards the credit card you will credit the bank account and debit the credit card account.

You should also make sure to reconcile the credit card monthly just as you would do for the bank checking and savings accounts.

Regards!

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Posting Negotiated Credit Card Debt

by Linda
(Austin TX)

My client had several credit cards that she negotiated a debt settlement. After I post the the final payment, how do I write off the balance?

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