USA Expense reimbursements netted?


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When there is an agreement that party A will receive a partial reimbursement from party B for expenses incurred, how should the amounts be recorded? I'm thinking entire amount of the purchase would be recognized as expense correct? If so, I'm struggling with the journal entry that would establish the receivable. The only thing that comes to mind is perhaps a subcategory of income?

1) At purchase
DR: Expense 200
CR: Cash 200

2) To record the reimbursement receivable
DR: Reimbursement receivable 50
CR: ????

Even if the reimbursement was for the full amount, I can't understand what the credit would be for. The only other thing I could imagine was if the reimbursement should reduce the expense. Although this doesn't seem correct to me, I can at least think of the journal entries:

1) At purchase
DR: Expense 150
DR: Reim. Rec 50
CR: Cash 200

Thanks for your thoughts
 
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bklynboy

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Offset expense. Think if you incur an expense that you have insurance coverage for. Would you not record the expense net of recovery?
 

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