Hello,

We run a restaurant business and most tips come from credit cards. We pay our servers weekly, adding in their tips owed from the week's sales.

My question is how to clear the tip payable account and what type of account is should be? The type of account right now is "other current liability" should it be an expense and put into the wage and salary account?  What do I credit it against? Credit card sales/income?

Can anyone help me out?

Thanks!