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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

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How to Book Journal Entry for Bonus Accrual
Bonuses are accrued as earned. Generally bonuses should be expenses over time as employees perform work over the service period, even when the final bonus amount is conditional on performance. When conditions like performance or other uncertainties exist, a probability weight should be applied.
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How to Book Accrued Expenses Journal Entry
Accrued expenses are expenses that have been incurred and are neither invoiced nor paid. For expenses that are invoiced and unpaid, these should be recorded in the proper accounting period via accounts payable
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How to Book Prepaid Expense Amortization Journal Entry
Prepaid expenses are costs that have been paid in advance for goods or services that will be received in the future. Prepaid expenses are recorded as assets on the balance sheet until they are used or consumed. When the prepaid expense is used or consumed, it is then recorded as an expense on the income statement.
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