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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 1292
Experience:  Certified Public Accountant
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My credit card was hacked and I had 20 transactions on my

Customer Question

My credit card was hacked and I had 20 transactions on my business account that my credit card has reimbursed. How do I account for the debit and credits in my accounting software?
Submitted: 5 months ago.
Category: Finance
Expert:  Mark Taylor replied 5 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 5 months ago.

Have you been reimbursed for all of the activity?

Expert:  Mark Taylor replied 5 months ago.

For the unauthorized transactions you could prepare a journal entry.

Expert:  Mark Taylor replied 5 months ago.

Unauthorized Transactions $5,000

Credit Card Payable $5,000

Expert:  Mark Taylor replied 5 months ago.

The formatting changed when I hit send.

Unauthorized Transactions $5,000

Credit Card Payable $5,000

Expert:  Mark Taylor replied 5 months ago.

The credit card payable is a credit of $5,000 and the unauthorized charges is a debit of $5,000. When I hit send the format changes.

Expert:  Mark Taylor replied 5 months ago.

Are you reimbursed these charges or do they just reverse them on the credit card statement? Assuming they are reversed you would do the opposite entry.

Credit Card Payable $5,000 (debit)

Unauthorized Transactions $5,000 (credit)

Expert:  Mark Taylor replied 5 months ago.

If you are reimbursed for everything then the balance in unauthorized transactions at the end should be zero.

Expert:  Mark Taylor replied 5 months ago.

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Expert:  Mark Taylor replied 5 months ago.

Please let me know if you have any other questions or need clarification. I am happy to help.