I do the books for a construction company and I am a little stuck as to how to record transactions from Escrow companies. When the company buys or sells property (with or without homes) the company will write a check to an escrow company and then some time later, the money will be refunded. How do I record this? It is not income, but I assume that I should not create an expense account for it either as it is money that is simply being returned.