NAphoto
Level 1

How do I record forfeited deposit?

Hi there,

 

I have a photography business and require a deposit to secure bookings. If cancellation is made after the cancellation period, the deposit is forfeited. Deposits are originally loaded as a liability, however, I am unsure how to record the forfeited deposit so that it does not show as a liability. Any help would be greatly appreciated.

 

Thanks in advance.