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We received payment from a customer but used paypal to

process so we had to...
We received payment from a customer but used paypal to process so we had to pay a fee. The fee is taken from the customer payment so when we transfer the amount to our bank account, it comes up short. My question is how to account for this for AR and bank recon purposes. Thanks!
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Answered in 4 minutes by:
3/13/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,693
Experience: Taxes, Immigration, Labor Relations
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These fees charged by PayPal are deducted as any other business expenses.

If for instance - you are filing schedule C to report your business income and deduction

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

- that fee is reported on line 10 Commissions and fees

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