How to enter insurance claims?

[Wouter van Marle]

On Fri, 2006-06-30 at 12:04 -0400, Anthony wrote:
> On 6/30/06, Wouter van Marle <wouter at squirrel-systems.com> wrote:
> >
> > > So if you pay $500 by check to the repair shop and your policy has a $100
> > > deductible, the transaction would be something like this:
> > >
> > > Debit Auto Expense $100
> > > Debit Accounts Receivable Insurance Claims $400
> > > Credit Checking $500
> > >
> > > When the check from the insurance company arrives:
> > >
> > > Debit Checking $400
> > > Credit Accounts Receivable Insurance Claims $400
> >
> > You mix up debit and credit.
> > Credit adds, debit deducts.
> >
> > But then I'm happy GnuCash doesn't use them as I always have to think
> > what is what... maybe best to indeed just avoid using them.
> >
> > Wouter.
> 
> No, the original is correct.  Debits increase assets and expsenses.
> Debits decrease liabilities and income.  Credits increase liabilities
> and income.  Credits decrease assets and expenses.  See
> http://www.dwmbeancounter.com/tutorial/DrCrTChart.html
> 


OK this confirms my second part:

Just don't use them :) I'm even more confused now and consider removing
the terms from my vocabulary entirely. Way too confusing.

> Anthony
> 
>