Hello accountants community!
So I have a client here and I'm supposed to do his books on quick books online.
Now my client sells renovation jobs as a service, and he FINANCES his clients for up to 15% of the price of the job until they pay the full amount.
Once the client has paid the amount in full, the owner also collects INTEREST on the loan he fronted them.
Now my question is; what journal entries would you do to record this operation at the moment where he grants the 15%, then at the moment he gets paid for the job + interest on that 15%.
to make things simpler, I can give you an example;
January 15 2020: Company gets a client for a 1000$ job.
February 15 2020: Company comes to an agreement with client to do the job and fronts him 150$ to begin the job.
March 15 2020: Client pays the company 1020$ which is 1000$+20$ interest for the loan.
And if you can, give me guidelines on how to enter the operation on quick books please?
Thank you so much in advance and have a nice day
So I have a client here and I'm supposed to do his books on quick books online.
Now my client sells renovation jobs as a service, and he FINANCES his clients for up to 15% of the price of the job until they pay the full amount.
Once the client has paid the amount in full, the owner also collects INTEREST on the loan he fronted them.
Now my question is; what journal entries would you do to record this operation at the moment where he grants the 15%, then at the moment he gets paid for the job + interest on that 15%.
to make things simpler, I can give you an example;
January 15 2020: Company gets a client for a 1000$ job.
February 15 2020: Company comes to an agreement with client to do the job and fronts him 150$ to begin the job.
March 15 2020: Client pays the company 1020$ which is 1000$+20$ interest for the loan.
And if you can, give me guidelines on how to enter the operation on quick books please?
Thank you so much in advance and have a nice day
