USA Journal Entries corresponding to transaction series

[Scott Finch]

Greetings,

I am new to the Accountant Forums and am excited to have this resource available. Here is my question. I have a series of transactions that need corresponding journal entries and an invoice. The transaction may be slightly unusual in that the check amount received will be greater than the price of the goods and the remaining amount will require a check sent to the customer to clear the company of further liability. Here are descriptions of the transactions:

1. Funds for $100 is received from a customer.
2. A purchase is made using the check funds that amounts to a group of (from the company perspective) expenses and income equal to a total amount of the purchase(from the customer perspective) that is less than the check amount.
3. The difference between the total cost(from the customer perspective) and the check amount is then written as a check.

I am sort of hung up on the journal entries, but I will write what I have thus far.

1. debit - bank cash(asset)
credit - customer account(liability)

2.debit -
credit -

3.debit -
credit -


I am using Quickbooks and would like to include some expense accounts like "shipping expense", "wire fee", etc. to break down the debits and credits for the second transaction (the purchase) on the invoice that will make the corresponding journal entries. Like I mentioned earlier the total amount of expenses + the income for the transaction is equal to the total cost of the product(from the customer perspective). And the total cost of the product + the residual amount is equal to the check amount.

I can answer other questions to try to clarify the procedure. Thanks!

 

[Scott Finch]

To clarify transaction description #2

2. A purchase is made using the check funds that amounts to a group of (from the company perspective) expenses. A commission income equal for the company is received in addition to the expenses for the transaction. The total amount of the purchase(from the customer perspective) is the total expenses and the company commission income which is less than the initial check amount.