Finance Questions? Ask a Financial Expert for Answers ASAP
Yes, your accounting on this transaction sounds correct
You would debit escrow and credit the loan to operating in order to account for the loan from escrow
Is there anything else you need assistance with today? If not, please rate as "excellent" so that I may receive credit for assisting you today
So the monies would be like a deposit in transit on the escrow account?
They would not be a deposit in transit
So now the escrow account is whole, but the loan money is not there. When you do a bank rec what would you consider it as for we are putting it back in the escrow.....
Oh, then it would be in transit
I misunderstood. Sorry
S when the money is paid back you just debit the loan account, you would not hit the escrow for it is already tie out......you would credit operating.
Is there anything else I can assist you with tonight?
Nothing at the moment.......Thanks so much