Classification of the Collection of the Given Debt in QBO

Ugur01 · ‎November 09, 2022

Hello,

The debt we gave from the company account was paid back to us. But I am unsure how to categorize the amount sent to our bank account. For example, should the appropriate amount be recorded as income?
Briefly;
We lent money from the company account and got our money back. How should I categorize the cash coming into the company account?
Should I record it as a "Recovery of Debt" under "Other Income"?
Is the repayment of the given debt an income?

Note: It is not bad debt.

I request your help.

Kind regards.

Rustler · ‎November 10, 2022

When you loaned out the money, that should have been an entry to an asset account you created called something like "Due in"

when you get paid back, it is a deposit and use that same asset account as the source account for the deposit

View solution in original post

Rustler · ‎November 10, 2022

When you loaned out the money, that should have been an entry to an asset account you created called something like "Due in"

when you get paid back, it is a deposit and use that same asset account as the source account for the deposit

Ugur01 · ‎November 10, 2022

Thanks, Rustler, for your answer,

But can we elaborate a little on the subject?

Does the link below meet the solution you mentioned?

https://quickbooks.intuit.com/learn-support/en-us/help-article/service-items/track-customer-loans/L4...

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Classification of the Collection of the Given Debt in QBO