We have our first ex-employee on COBRA. We will be receiving his premium payments via check from our COBRA administrator in order for us to pay our vendor.

I created a new receivable account on the chart of accounts and labeled it Cobra Benefits Receivable.

I set up a new customer account for the COBRA administrator company and started entering an invoice for the first month's premium.

I created a new Product/Service and labeled it Cobra Payment (or should it be Cobra Premium?). What income account should I point it to? Other Miscellaneous Income? Something different?

Or am I doing this all wrong?