General
Interest Charged on Overdue Customer Accounts
Recording a finance charge applied to a customer's balance because they paid past the due date.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset (+) | 25.00 | - |
| Interest Income (Finance Charges) | Revenue (+) | - | 25.00 |
💡 Accountant's Note
This increases the amount the customer owes and recognizes the interest as other operating income.
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