cancel
Showing results for 
Search instead for 
Did you mean: 
justin cook
Level 1

Klarna payment for assets

So i bought a Gumball machine and paying via Klarna for 4 payments. How is the best was to categorize the transaction as it turns into a equipment asset?

3 Comments 3
Rustler
Level 15

Klarna payment for assets

Create the fixed asset account for the machine, and an associated accumulated depreciation account too

create a liability account for Klarna

journal entry
debit the fixed asset account for the machine
credit the liability account Klarna for the total amount

make your payments to Klarna and use that same liability account as the expense (reason) for the payment

Rainflurry
Level 13

Klarna payment for assets

@justin cook  

 

Just an FYI - it is not necessary to record the purchase as a fixed asset if the cost is less than $2,500.  This is what's known as the IRS de minimus capitalization threshold.  You can expense it fully in the year it is put into service. 

justin cook
Level 1

Klarna payment for assets

So should I be tool,plant and equipment right? That’s what I have my vending machines classified as

Need to get in touch?

Contact us