Quicken & Other Budget/Accounting Software/Barter

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QUESTION: Hi,

I have added a credit memo of $41,175.00 to the barter account from sales for a payment contra with a company.

I also have added a credit memo from purchase of $149,776.32 for a payment contra with the company.

The total payment made to the company is $170,000.00 only

So what is the next step to make the barter accounts balance as zero?

ANSWER: Hi Farida

You should only create BARTER journal entries to accounts receivable and
accounts payable for the amount of the BARTER

Any remaining amounts payable or receivable need to be collected from the customer or vendor.

So if you added a credit memo that reduces your receivable for 41,175.00 then the
value that reduces accounts payable for money owed is only $41175.00.  You would still owe
$108,601 (149,776.32 minus 41,175.00)  

If someone says you dont owe the money to the vendor then you need to call the vendor and
discuss each of the amounts you posted to accounts payable for that vendor to determine
where the error lies.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

We sell and support QuickBooks Enteprise
http://www.qbalance.com/enterprise_quickbooks.htm


---------- FOLLOW-UP ----------

QUESTION: Well, it's actually like this.
We are making payment to this company A, and at the same time, they also owe us from a few sales invoices.

Our sales invoice to company A total of $64,453.69
Our purchase invoice from company A total of $234,453.86

So instead of paying full amount of $234,453.86 above, we only need to pay $170,000.17 after minus out the sales invoice to company A.

Please let me know what entries is needed and the transaction details in order to do the above. What to debit and credit for journal into BARTER or any other necessary account.

Answer
Debit Barter $64453.69
Credit Accounts receivable $64453.69  (Company A)

Debit Accounts payable $64453.69   (Company A)
Credit Barter $64453.69

You should then be able to write a check to Company A for $170000.17
out of the accounts payable module  which will reduce what you owe them to zero.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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