Credit Card Rewards Account

[Jason]

On 8/3/2010 9:15 PM, Jay wrote:
> All,
>
> So, I've a fairly straightforward question... I have a credit card from which i
> get cash rewards. Every so often, they cut a check and i deposit the check into
> an asset account. The question, to keep with the 2x-Entry, how can i keep track
> of these xactions? 1) earning rewards (noted on a CC bill monthly) 2) redeeming
> rewards (asset deposit)
>
> I have a CC liability acct (L), a current asset acct (A), and a CC rewards sub
> (R) account (type asset) under the CC liability (L). I would prefer that these
> rewards not show in the (L) account because they screw with the balance. Any
> thoughts out there?
>   

The rewards typically (at least in the US) are some form of Income. You
end up owing taxes on them, they typically show up on a 1099 at year end.

So, I record them as Income:CCRewards