We are a service firm. As a general rule any expenses that are billable to the client are marked up by a percentage. However, sometimes we do not markup the expense. Since the expenses are billable to the client, we make the following entry to record the expenses (on expenses that are not marked up)...
DR: Accounts Receivable - Client
CR: Credit Card Payable
What if the expenses are marked up? There should be an additional credit, but to what account? An income account?
DR: Accounts Receivable - Client
CR: Credit Card Payable
What if the expenses are marked up? There should be an additional credit, but to what account? An income account?