Get refund of expenses

[joveliee]

an rental fee prepaid in the previous year, I wrongly recognized this as rental instead of prepaid.
and somehow the tenancy is cancelled and I get the refund this year, should I deduct the rental account, or what should I do?

 

[kirby]

The rental fee was recorded as an expense last year. The refund should be recorded as a credit to rental expense this year.