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performancefabllc
Level 1

Recording a Loan Payment

Our company loaned one of our subcontractors $5000. The subcontractor repaid the loan by issuing a credit on an invoice to us. How do I show the loan is paid?  

1 Comment 1
qbteachmt
Level 15

Recording a Loan Payment

The initial amount paid is posted as a check expense to Other Current Asset = loaned to another.

 

The entry for the vendor as Vendor Credit is going to use that same Other Current Asset account as the Expense reason. Now you have this AP Credit to use in Pay Bills.

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