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Accounting for finance company discount fees?

edited Apr 29, 2021 7:55AM in Ask A Guru 4 comments

Hi All,

We offer our customers financing through Wells Fargo. When Wells Fargo deposits the funds into our account we record a payment on the customer's account for the deposit amount. The problem is that the deposit amount is the order total minus the discount fee charged by wells fargo.

So my question is how do we account for the discount fee in a way that removes the balance from the customer's account?

Thanks for any help on this. ?

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