USA Record revenue written off


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Looking for help here. I’m a little lost and probably overwhelmed at this point
We were billed $500 by a sub
We bill the client $500 and we paid the sub
The client also paid the sub directly and not us so our billers “wrote off” the $500 instead of doing a credit memo
The sub then refunded us the $500 and accounting put the $500 in a misc account. This happened in 2015. Now we need to clear out this misc account. Where do we put this $500? It’s not revenue in our current year.
Thank you
 
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kirby

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It's not revenue but it's going to have that effect somewhere in your accounts.
Look back to that write off. If you used the Allowance method and debited the Allowance for Bad Debts for the write-off then this is where the credit goes. If you debited expense then decide if you want to show it as a reversal of that account or just "Misc Income". Either way, just do something and go forward with your life
 

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