USA Application of Credit Card Payments

[QBslave]

Client owes x on his card. Expenses on the card are commingled. Client makes a partial payment on the balance. How to apply the payment?

 

[jwmca.com]

What do you mean by commingled?

K.I.S.S. You post debit to credit card payable credit to cash.

 

[QBslave]

What do you mean by commingled?

K.I.S.S. You post debit to credit card payable credit to cash.

"Commingled" means personal and business charges on same card.

 

[QBslave]

Understand simple J.E., but where expenses on the card are commingled, part of the payment is a draw and part is business expenses.

 

[jwmca.com]

Put them to due to shareholder

 

[ladyrider]

@QBslave: The payment itself would always go to the CC liability not draws or expense. The transaction on the CC itself would be what you would have to figure out which is business and which is personal. Doesn't matter that they are paying the CC balance with business funds, what matters is where the charges are being posted to from the statement.

Beginning balance = 1,250.00
Gas for business 25.00 = fuel expense
Haircut for owner 20.00 = owner draw
Ending Balance = 1,295.00
Will reconcile to the CC statement. Then when a payment is made to the CC it's Debit CC liability / Credie Checking account

Also if you wanted to use a due to and from account the personal charges wouldn't be due TO shareholder, they would be due FROM shareholder.