Receiving monies for invoices from persons other than those that it was issued to?

Question

I issue an invoice "A" to John

I get a wire transfer from Betty stating she will cover invoice "A"

what are the GAAP implications for such a transaction and is it allowed?

Answer 1

I believe that if the wire transfer had a memo added to it stating it was paying invoice "A" you will be fine. Betty, however, is the one who needs to worry about how to track that transaction. Perhaps Betty and John work together as a partnership under two names. While John may open accounts, Betty may utilize the accounts under John's name and pay the account directly. As long as your services are paid for, you are fine. It's John and Betty who need to figure out the coding of their costs.