Prepaid debit card doesn't cover the purchase price

terryek

This is maybe a general accounting question, but a cashier accepted a prepaid debit card that didn't cover the amount of the purchase. The POS system flagged this as a partial payment but the cashier didn't notice and let the customer leave without paying the difference. The business is a small art gallery that sells items on commission. Since the error was the gallery's, the full amount of the sale must be posted to the artist's account, so how should I categorize the shortfall? Thanks!

Mark1104

Credit cash for the amount actually received

Credit the artist's account for the amount they SHOULD BE receiving

Charge an expense account for the difference. Call it something like "store mistakes"

terryek

Thanks!