How to Book Credit Card Rewards Journal Entry

Credit Card Rewards are recognized when earned. Typically this is when the underlying purchase that earns rewards has occurred. Credit Card Rewards are often totalled for the month and booked as a single entry rather than as spending occurs. In this example, a company has earned $1,000 for the month which is recorded as a statement credit.

Debit: Credit Card Liability $1,000
Credit; Credit Card Reward Income $1,000