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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 Allowance for Doubtful Accounts Journal Entry
Allowance for Doubtful Accounts (AFDA) is an account used to record the estimated amount of customer accounts that may not be collected. It is a contra-asset account, meaning it is a negative asset account that offsets the Accounts Receivable balance. There are two steps to recording AFDA.
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