need to adjust a note payable

Mitch Fry

I use quicken for my automotive business. I buy a car for my son and he gives me the cost of the vehicle to deposit. I deposit that as a loan (note payable) and it shows as income. The income is offset by the vehicle I write the check for, (0) profit. The vehicle depreciates and when he sells it through the business I pay him for the car (the sale price). This figure is always less than the amount the I have deposited when he purchased it. For example, I deposit $10,000 as a loan, I pay $10K for the car (shown as vehicle purchases and stays in my inventory) he sells the car for $8k next year, I cut him a check for $8K but my income shows a $2k profit.

How can I adjust the amount owed so I don't show a higher balance in the loan category.