Hello,
A past employee is repaying wages that the employer overpaid over multiple years. The repayment is occurring over a 4 year period. I know the total amount the employee is going to repay.
How is this situation accounted for in the general ledger? I am thinking a receivable has to be established for the total amount that will be repaid, and the payments from the past employee are applied to the receivable. What I am not sure about is what account the credit goes to when setting up the receivable.
Dr Notes/Accounts Receivable $
Cr ??? $
Thank you in advance for your help.
A past employee is repaying wages that the employer overpaid over multiple years. The repayment is occurring over a 4 year period. I know the total amount the employee is going to repay.
How is this situation accounted for in the general ledger? I am thinking a receivable has to be established for the total amount that will be repaid, and the payments from the past employee are applied to the receivable. What I am not sure about is what account the credit goes to when setting up the receivable.
Dr Notes/Accounts Receivable $
Cr ??? $
Thank you in advance for your help.
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