Problem:
On the balance sheet we've had a note payable for 7 years as a balance of just say with interest all in is $50,000. We negotiated and paid the payable off for $20,000.00.
So we credit cash (Reduce Cash) and debit the payable but what do we do with the balance $30,000? This liability is gone because both parties agreed and signed off. Where does this get written to?