USA Loan Journal Entry

[kmhoffmann]

So the credit union my business has it's loan through has a reward program. With this reward program you earn points and when you reach so many points they make a reward payment towards both the principal and interest of the loan. I'm not sure what journal entry I should use to account for this.

Thanks for your help!

 

[kirby]

Start with your usual entry for payment. Instead of a credit to cash, credit miscellaneous income.