How to use a journal entry to "pay off" billd from our vendor?

EmilyZhan · ‎March 08, 2021

Our parent company pay insurance fee on behalf us, then they issue related debit notes to us , total amount is $5,000.00. To settle those outstanding, $5,000.00 1) We transfered $1,000.00 to them 2) Remaining balance settled by way of intercompany loan $4,000.00 how could I process in QBs to clear off those outstanding? Thank you if anyone can help me out.

Rustler · ‎March 09, 2021

create a loan liability account named for the parent company

deposit the 5K and use the loan liability account as the source account for the deposit

make the 1K payment and use the loan liability account as the expense (reason) for the payment

View solution in original post

Rustler · ‎March 09, 2021

create a loan liability account named for the parent company

deposit the 5K and use the loan liability account as the source account for the deposit

make the 1K payment and use the loan liability account as the expense (reason) for the payment

EmilyZhan · ‎March 10, 2021

Hi Ruslter,

Thank you for your reply!

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How to use a journal entry to "pay off" billd from our vendor?