I am using square to do all my EFTPOS and credit transactions. They did a test transaction, how do I record this transaction. They transferred money into my account and then took it out of the account.
The amount they deposited into my account I treat that as a normal deposit and put the companies name as the payee. Then for the withdrawal, I set up and expense account in their name and record the withdrawal as an expense.
I am doing bank reconciliations, and the above transactions were on the bank statement but not included in any of the bank feed updates as they occurred when I set up the bank account and merchant account as my bank statements end on the 27th of the month. Do I do a journal adjustment to include them so the reconciliations match?
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