So my company manufactures and ships a product using our freight broker (our vendor), and the carrier they used lost our product. So we filed a claim in the amount of item lost with the carrier as told to by our freight broker. The carrier sent us a check for $430. The carrier is not our vendor, or a customer. So how do I record this $430 check? We did end up sending the product again, but obviously only billed our customer for the product they received. So we've manufactured and sent out two products and only invoiced for one, while the other was lost. Would I maybe apply it to our warranty expense account or do I create a Freight lost account? I can't add the carrier as a customer because then it shows them with a credit of $430 on our accounts. I can't apply it to our vendor the freight broker because it is not their money.
