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AClark73's avatar
AClark73
Contributing Cover User
3 years ago

Debt Collection Transactions

Hi Brains Trust

 

We recently used a debt recovery company to recover an outstanding payment of an invoice. The customer had made a part-payment, and then didn't pay the rest.  Through the debt company, we received the outstanding payment less the fee which the devt collector kept and passed on the remainder.

 

Initial invoice $2090

Initial payment $500.00 (which was allocatod to the initial invoice ages ago)

Debtor owed $1590

Debtor made payment of $1590 to debt collector, and amount deposited in our account $1240.20

Debt collector 'paid' $349.80, although no actual payment made.

 

 

I have no idea how I close out the invoice, as the outstanding invoice amount and amount paid do not match.  Also do not know how I out through the 'payment' to the debt collection company.

 

Please send help :-)

 

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  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    3 years ago

    I would suggest that you record an invoice for the debto collectoe for the $349.80 and pay it fron undeposited funds

    Then receive the invoice payment of $1590 also to undeposited funds.

     

    Then prepare a bank deposit with both transactions for the net amount to the bank.

     

    This will record all transactions for you

     

    Hope this helps

     

    Lisa