Hello,
I'm wondering how to do the following:
1. How do you properly record accrual expenses for subcontractors? Do you set it up as a journal entry? If I did would it look like this:
- Subcontractor Accrual (other current liability) as a debit
- Subcontractors (COGS) as the credit.
2. Also, after the journal entry is entered I know I need to reverse it. But what do I do when I get the actual bill? I know I need to reverse my journal entry, but how do I account for the amount invoiced and what would the date be on the bill (since I am reversing the date of the journal entry, it will not show up properly in Accounts Payable as the correct month because they bill us when they feel like it.
Appreciate the help!
Mindy
