I would suggest that if keeping all of the receipts are too much of a burden, that you record receipts for things that are potentially an issue (large amounts, items that are unusual, etc.). You might just have to be prepared to say: 'okay, I accept that these are inadequately documented, here is a check for the tax that I should have paid on these items'. Unfortunately if you and the IRS disagree, you would have to take the matter to tax court and get a decision - probably too expensive to do to be worthwhile. On one side, one could say that the credit card statement is adequate documentary evidence, while on the other, one could say that the annotations could be made-up, and there is no way to check them to see if they are true. While a credit card statement will show the supplier of the item in question, it will not show details of the item itself.Д¬redit card statements will show almost the same thing as cancelled checks, with the exception that a check normally has a memo field where you can describe what the service is (which importantly is accepted by the receiver of the check).ДЄs a result you could make arguments either way. Additional evidence is required for travel, entertainment, gifts, and auto expenses. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. The IRS website defines the burden of proof as follows: Then, after the payment arrives, cash is debited for $970 and accounts receivable is credited for $970.The answer unfortunately is not black and white. If the payment in the previous example had not yet been received at the close of an accounting period, the company would make an adjusting entry that debits credit card expense for $30 and credits accounts receivable for $30. The matching principle requires that expenses be recognized during the same accounting period as the revenues they help to generate. However, if the sale occurs during one accounting period and the payment is not received until the next accounting period, an adjusting entry must be made, if the amount of credit card expense is significant, to prevent the matching principle from being violated. Recording credit card expenses after receiving payment, as in the example above, is convenient because a compound journal entry is all that is needed. Upon receiving payment, the company that made the sale debits cash, debits credit card expense, and credits accounts receivable. The credit card company deducts their fee before paying the company that made the sale. After submitting credit card receipts totaling $1,000 directly to a credit card company, the company that makes the sale records the entry by debiting accounts receivable and crediting sales. There are also some major credit cards that are not issued by banks, and receipts from these cards must be sent to the credit card company for reimbursement rather than deposited at a bank.

When a customer makes a purchase, the company must debit the customer's account and credit the sales account. For example, many gas stations and department stores provide customers with credit cards that can be used to buy goods or services only at the issuer's place of business. Some credit card receipts must be treated as receivables rather than cash. Inventory Errors and Financial Statements.Inventory Systems: Perpetual or Periodic.Recording Notes Receivable Transactions.Subsidiary Ledgers and Special Journals.Generally Accepted Accounting Principles.

Credit card receipts