Reconciling cash expense to debt reduction

QuickBooks Help QuestionsCategory: 1. Dashboard > 8. AccountingReconciling cash expense to debt reduction
Jeffrey S. McDowell asked 1 month ago

My entity has a rather large debt. We operate with our own checking account and track transactions on our behalf through third-party bank trust accounts. Recently one of the trust accounts made a cash payment on part of the debt. When I record the transaction in the trust account, it is recognized on the QB income statement as a cash expenses and on the QB balance sheet as a payment out of the trust account. It does not, however, recognize the debt reduction. If I make a general journal entry, it reduces the debt and balances the trust account, but it is not recognized as a cash expense. If I try to enter booth the cash expense and the general journal, QB makes a double entry reduction in the trust account. Clear as mud? How do I make a single entry that reconciles cash expense,debt reduction and trust account balance. Thank you in advance.

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