Financial Software Questions? Ask IT Support for Answers ASAP
Welcome to the site. I'm PDtax, and will be helping you today.
This works for businesses like buy here pay here car sales. For tax purposes, such businesses have to report the income on the sale when the vehicle is sold, not when the payments are made.
Can you confirm the kind of business?
I would set up the books to report a debit to account or note receivable and a credit to sales. Each customer could have their own note receivable account, such as Note receivable - Wilson.
when payment is received, debit cash, credit Note-Wilson until paid in full.
This is a time share company that get's people out of their time shares. The financing starts after a down payment. For example they charge 7000.00 receive a 2000.00 down payment and interest. They want to have a cash set of books.
so the books you want to assemble will show income as cash received. The entries will be similar:
If your business doesn't take title to the time share, but simply works as a middleman, then you would have a complex entry for your activity, as follows:
Sale to new timeshare buyer:
going to Q & A for entries...
Are you still there?
Can I come back and ask you more questions after I set this up in QuickBooks.
Thanks for your help