How to journal an expenditure that provided no value?

Question

Let's say I buy a logo on a service like Fiverr for $5.50. The logo doesn't meet my needs, but I'm still obligated to pay the graphic artist for services rendered. If the logo had met my needs, I'd consider it an intangible asset. In this case, though, the logo has no value to me. When I credit my Cash account the $5.50, into what account should I put the offsetting entry?

Answer 1

You can offset it as an Expense..cost of doing business,