Correct Entries for Dental Expenses?

[Michael Hendry]

On 14 May 2013, at 14:13, Ken G. <beachkidken at gmail.com> wrote:

> This has been bugging me for several weeks now and
> I think I got it right but need to be reassured and
> corrected. Gee, it has been some 52 years since I
> took Bookkeeping in my senior year at high school.
> Received A+ all year round so I should know. LOL.

I'm not sure that I understand the question, Ken.

> 
> On March 28 of this year, I had to make an emergency
> dental visit to have my tooth pulled. I was asked
> to help prepay then.

I presume that "Help Prepay" is a way of paying the dentist by instalments - I'm from the UK.

> 
> 03/28/13: Help Prepay
> Debit Liability Account
> Mortenson Family Dental    $51.30
> Credit Asset Account
> Checking Account               $51.30

So that's fine - you owe Mortenson Family Dental (MFD)  some money (total not yet known?), you write a check for $51.30, and record the transaction.

You've set up a regular payment to MFD from your bank, starting with $25 on the 11th of April, and continuing with $75 every month thereafter?

> 
> 04/11/13: Starting Monthly Allotment
> Debit Liability Account
> Mortenson Family Dental    $25.00
> Credit Asset Account
> Checking Account               $25.00

So far so good.

Now you receive a statement from the Dentist, telling you that you owe him $310...
> 
> 05/02/13: Received Monthly Statement
> Debit Dental Expense        $310.00
> Credit Liability Account     $310.00

…and post this correctly. But is this the total charge for the extraction? Or is it the balance after some payments have been subtracted? I presume it's the total.

> 
> 05/02/13: From Monthly Statement
> Debit Liability Account    $218.70
> Credit Income Account
> Met Life Insurance            $218.70

Did you receive this money directly from Met Life Insurance? Or was it paid to MFD? I presume it was paid to the dentist, but you want to record the whole cost along with the (partial) reimbursement from insurance.

> 
> Statement Balance owing: $15.00

This is correct, if the total charge was $310 and Met Life has already paid the dentist. You've paid $51.30 + $25 and Met Life have paid $218.70, leaving $15.00 to pay.

> 
> 05/12/13: Recurrent Monthly Payment
> Debit Liability Account    $75.00
> Credit Checking Account        $75.00
> 
> Currently $60.00 credit in liability account

As you've paid too much, this is correct, as $75.00 - $15.00 = $60.

> 
> I would appreciate any suggestion or comment.

Ask for your $60 back, and cancel any further payments!

Michael

> 
> Ken
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