Tenant charges for expenses incurred.
Hello, I'm still quite new to bookkeeping and would like some help understanding how to code/categorize deposits and withdrawals for expenses we as landlords incurred as a result of tenant damage that we ultimately charged back to the customer. For instance, a tenant's dog destroys a couple doors, floors, and blinds. The cost to repair all damages is $500. We as the landlords pay the $500 to repair the damages and we invoice/receive $500 from the tenant. How do we accurately code the money received for the damages and the money paid for repairs? In my mind, this doesn't seem to fit into any of our Income/Expense COA categories.