"Agree to Amortize"
My client paid off a loan. The pay off amount is not the same as the balance on the balance sheet.
When I looked at the loan account (liability), the CPA added an amount and a memo "agree to amortize." What does this mean?
The loan amount on the balance sheet carries a negative (-$1200) amount which I believe is not correct to begin with.
Thanks for the advice in advance!
My guess, is that the account has not been reconciled, so finance charges, have not been added to the account. This would cause the account to show as negative. This is likely also the reason why the payoff amount, doesn't match what the account balance is. See if you can get the past statement, and reconcile it.
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