How should I categorize a check from our insurance company for a claim to pay for damages and new equipment when a pipe burst? It's not considered income, right?
How should I categorize a check from our insurance company for a claim to pay for damages and new equipment when a pipe burst? It's not considered income, right?
How should I categorize a check from our insurance company for a claim to pay for damages and new equipment when a pipe burst? It's not considered income, right?
I'm not a CPA; but when this has happened to my clients their CPA had me create an "Other Income" type account called "Insurance Claim" to post the check to. If you equipment was replaced or repaired; then you will have expenses on the P&L for that; so the refund from the insurance agency basically cancels that out so the net result to the P&L is zero.
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