Let's assume that an employee has made personal phone calls of $20 which are included in the company's phone bill of $100. Below are two options for recording the cost of the employee's personal phone calls.

If the employee is paying (reimbursing) the company immediately, you can record the entire phone bill with a debit of $100 to the company's account Telephone Expense. You will also credit Telephone Expense for $20 when you record the $20 receipt from the employee.

If the employee is not paying the company immediately, you can record the $100 phone bill by debiting Telephone Expense for $80 and debiting the asset account Receivable from Employees for $20. When you receive the $20 from the employee, you will credit the account Receivable from Employees.

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