My company has 2 sets of books.
Company 1 is where we receive sales. Company 2 is where we have our expenses: wages, utilities, etc. When company 1 transfers money to company 2, is that considered notes payable to company 1? Or is it still considered as Sales?
Ex.
Company 1 receives 100k. Company 1 transfers 50k to company 2.
Company 2 debits cash and credits sales? or debits cash and credits notes payable to company 1?
And what does company 1 do? Credit cash.. and debits notes receivables?
Both company's are the same company. Company 1 will never receive the money back and Company 2 will not pay back company 1...
Any feedback is greatly appreciated. Thanks
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