Real Estate
Late Rent Payment Penalty
Charging a tenant a penalty fee for paying rent after the contractual due date.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Tenant) | Asset (+) | 250.00 | - |
| Penalty Income (Late Payment) | Revenue (+) | - | 250.00 |
💡 Accountant's Note
Late payment penalties are recognized as Other Income when charged to the tenant. They compensate the landlord for the time value of money lost from delayed receipts.
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