@sandia thanks…still confused on how we're using 2/2…maybe more coffee is needed lol. good luck in April!! Interested to see what you think. My wife and kids are definitely ready for me to be done 🙂
@cpa I found this explanation in another thread, hope it helps:
Egan says to Barton (the original creditor) “I'm satisfied with the settlement, you've paid me the full amount that I expected to get from you, I'm not going to ask you for any more money. Here, have your car title (or whatever) back.”
Egan can release Barton and declare Barton's debt paid in full, even if Barton still thinks he owes money on the debt.
Egan can NOT then turn around and say to West, “I didn't get enough money from Barton, he defaulted and didn't pay the full, so you owe me the difference.” If Egan releases Barton, it's done.
This situation sometimes happens when a careless Accounts Receivable clerk posts someone's payment to the wrong account. Egan is collecting monthly payments from both Barton and Carton, but posts both payments to Barton's account. Egan's account auditor fails to notice the misposted money, sees Barton's account balance drop to zero, and sends out notices and release documents declaring Barton's debt paid in full.
A few months later a very ticked-off Carton gets ahold of Egan and asks, “How come you haven't given me credit for my payments?” and the misposting is discovered.
Egan now has to give proper credit to Carton, but as far as Barton — and West — are concerned, Egan is stuck. When Egan released Barton, he released West as well.
CPA, CFE
CISA- Experience will be completed by August 2016