USA Unearned Late Fee's

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Jan 31, 2017
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I am inquiring about the handling of uncollected late fee's so that revenue is reflected appropriately on the income statement.

When late fees are posted to the G/L this is what happens:

Dr -A/R - Tenant xx

Cr - Late Fee Income xx

I am thinking, at the end of the month a delinquent and prepaid report can be generated by the accountant to determine who has outstanding late fee's. This amount can be moved out of late fee income account onto an uncollected fee account on the balance sheet.

Dr - Late Fee Income xx

Cr - Uncollected Fees xx

This will appropriately reflect late fee income on the income statement, but also allow for future reconciliations for when those late fees are collected.

Dr -Cash xx

Cr - A/R - Tenant xx

Dr -Uncollected Fees xx

Cr - Late Fee Income xx

This seems to make sense....but how would one be able to keep track of when late fees are paid on balances that have been moved to the uncollected fees account?? Thinking out loud....hmmmmm. Ideas??
 

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