USA Writing off lost shipments

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We sometimes make a shipment of hardware to a customer, say $150. Shipment gets lost. Carrier reimburses us $100. How do I account for all this?

Thanks,
 

kirby

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If Shipment had been recorded as a receivable
Dr Loss from lost shipments expense $160
Cr Accounts receivable $150

Dr Cash. $150
Cr Recovery from lost shipments contra expense $150

The idea is to show the loss and recovery accounts gross and not net them to give you more info

Then on your income statement those accounts are grouped together in the Expense section with a subtotal to net them:
Loss from lost shipments $150
Recovery from lost shipments (100)
Net loss from lost shipments. $50
 

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