E-commerce
Merchant Cash Advance — Daily Revenue Deduction
Recording the daily automatic deduction from sales revenue to repay the merchant cash advance.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchant Cash Advance Payable | Liability (-) | 230.00 | - |
| Finance Charge Expense (MCA) | Expense (+) | 30.00 | - |
| Cash / Gateway Balance | Asset (-) | - | 260.00 |
💡 Accountant's Note
MCAs are typically repaid via a fixed daily percentage of sales. Each repayment reduces the liability and amortizes part of the finance cost. The split between principal and cost follows the effective interest method.
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