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great, thanks Megan
how would we show this in qb?
Okay Now you would have a note receivable for the full face value of the note
then you would have a discount which is a contra asset account
Then the third piece is the cash that you paid out
So you would debit note receivable, and credit discount on notes receivable for the discount, and credit cash for your purchase price
The discount is amortized over time
Discount = contra asset account?
what does that mean?
that is not an option
or do i put like a negetive fixed asset or something weird?
It would be a negative account receivable
It's just got a credit balance.
does qb allow two differnt ar in one transactions?
I don't know anything technical about QB, I just know how to record the transaction properly under accounting rules.
Is there anything else I can assist you with today?
i am checking it
so to clarify
Note Receivable - AR (full amount due)Discount - (Negetive) AR (discount amount)Cash - Cash (after discount or actual amount paid)
That is correct
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