Correct Entries for Dental Expenses?

[Ken G.]

On 05/14/2013 01:17 PM, Michael Hendry wrote:
> 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.
I prided myself on double entry bookkeeping so I should know how to do this.
>
>> 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.

I was asked to make a payment before having my tooth pulled. I had no 
idea what the total cost would be.
>
>> 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?
Correct. I still had no idea of what I will be owing.
>
>> 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.
Total charges for the months of March and April was $310. Total Credits 
including
my payments and insurance payment were $295. I already paid $51.30 and $25.
Insurance paid $218.70. Insurance paid directly to dentist.


>
>> 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.

Insurance paid directly to dentist in the amount of $218.70.
>
>> 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.

I am leaving it there as I will be incurring further debts from the 
dentist. Will be paying
$75 per month until balance (unknown) is paid. Unknown is what insurance 
will be
paying.
>
>> 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!

I wish I could but I needed some urgent dental works.
> Ken