Taxpayer rented equipment and it was insured in case of damage.
Unfortunately, equipment was damaged and a claim was made to the insurer.
Taxpayer gave the funds received by the insurer to the owner of the equipment while expensing a small loss of $200 (Difference between the insurance payout and what was owed to the owner of the asset).
I have the following Journal Entry:
Receiving the insurance payment:
DT Cash XXX
CT Other Income -Insurance compensation XXX
Paying owner of asset:
DT Other Income -Insurance compensation XXX
DT Loss from insurance claim $200.00
CT Cash XXX
Also, for HST purposes this should have no impact on the sales number on line 101 because the income comes in and shortly after goes out.