I overpaid a credit card account and received a check for the overpayment amount. How do I account for this amount and zero out the credit card balance? The balance on the card showed as -$50.00 and I tried to do a "Credit/Refund" but this makes the balance -$100.00.
Credit Card overpayment
Sep 29, 2011
4 Replies
Use the Make deposit screen to record the bank deposit. The "From Account" will be the credit card account. This will be the same as making a $50 purchase on the account to offset the balance.
Company -> Create journal entry: Debit checking account $50, credit accounts payable/expense account $50
Yes a journal entry will also work but why use a journal entry when using a form (deposit) works too?
Yes, the "proper" way would be to receive the payment into undeposited funds (to capture the actual payment date), then a deposit as you suggest, using the cleared date.
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