Hi,
I have this lodging expense that an employee submitted for reimbursement and it is to be billed to a customer. I want to know if the below is the correct way of posting the journal entry.
Employee expense:
Credit : AP
Debit Billable lodging expense
Invoice to the customer:
Debit : AR
Credit : cost of goods sold? or should should it be Lodging Expense?
I have this lodging expense that an employee submitted for reimbursement and it is to be billed to a customer. I want to know if the below is the correct way of posting the journal entry.
Employee expense:
Credit : AP
Debit Billable lodging expense
Invoice to the customer:
Debit : AR
Credit : cost of goods sold? or should should it be Lodging Expense?