What Type of Account is a "Reserves for Property Damage" Account?
I take income from guests at a rental property and set aside a percentage of that amount to handle damage because I want to track it. This is not something that is returned to the guest if there is no damage. It is just a set-aside. Would that be a current liability type of account?
What Type of Account is a "Reserves for Property Damage" Account?
A notional allocation like that is not a real liability so normally you would not book it all. I guess in theory you could book maintenance allowances as accrued expenses - but I haven't seen anyone doing it ...
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