My Client has multiple LLC's in Quick Books on-line. They are a TPA for insured warranty contracts. They service the claims, and collect premiums and pass the net less their commission onto the insurance company. In 2018, they explored the opportunity to write business in Canada and got their insurance license, etc. with a different Insurance Carrier but didn't set up a Canadian company in Quick Books. They sold some Canadian warranties and paid some claims and recorded the transactions in the existing TPA which is not licensed to write Canadian business. The entry was to debit claims expense and credit Loan Receivable from Canada.
So - I am here now and I need to move this Receivable to one of the non-insurance LLC's as of 2018. I am not sure how to properly record the transaction. Eventually the Claims Expense and Note Receivable will go onto the Canadian company but it didn't exist in 2018. Any advice would be greatly appreciated!! Thanks!!
