I was wondering if you all would be open to using a diagram to outline your QB steps as a final step/solution to your previous explanations. Personally, it's a bit difficult trying to decipher, interpret/translate from paragraph form explanations into a step-by-step process. Below is a copy of Teri's diagram as reference to start with. Feel free to edit, change, delete, add based on your final solution. Thank you so much!
Added description of each entry in red to explain entry.
Item 1 is recording Expense/Assets for AMEX purchases.
Item 2 is recording Cash entries between A, B and AMEX.
Company A:
1a) Debits Expense or Asset for AMEX purchases $700*
Credits CC liability account for AMEX purchases $700
To record Expense or Asset bought on Co A's AMEX
1b) Debits current asset: "Amount Due from Co B" $300
Credits CC liability account for AMEX purchases $300
To record Co B purchase on Co A's AMEX to be re-paid
2a) Debits CC liability account for AMEX purchases $1000
Credits Current asset "Amount Due from Co B" $300
Credits Cash/Bank account for AMEX payment $700
To record payment to AMEX and payment from Co B
Company B:
1c) Debits Expense or Assets for AMEX purchases $300*
Credits Current liability "Amount Due TO Co A" $300
To record Expense or Asset bought on Co A's AMEX
2b) Debits Current liability "Amount Due TO Co A" $300
Credits Cash/Bank for amount paid to A’s AMEX $300
To record payment to AMEX as repayment to Co A
