USA Confusing Inter-company Transactions

[Di50]

Company #1 pays medical insurance for Company #2. One of the owners of company #2 takes net income distributions on a monthly basis and his medical insurance is deducted from that. I have a "due to" liability account to book the amount due to company #1 but I don't know where to book the debit since it is being paid in full and isn't a company expense.
I am trying to clean up the entire year of 2018.
Thanks

 

[kirby]

Your post's title is correct. I am confused by the post. Help us by showing example entries that are identified as being in Company 1 or Company 2. Then you should be able to show that 1 or 2 has the due to liability. Sounds like it is in 2 but I'm not sure from the post.

 

[Di50]

Your post's title is correct. I am confused by the post. Help us by showing example entries that are identified as being in Company 1 or Company 2. Then you should be able to show that 1 or 2 has the due to liability. Sounds like it is in 2 but I'm not sure from the post.

I will do that. Thanks