How do I Book an Insurance Deductible

The loss can be recorded in either the cost of services section (damage is a cost doing business if you are in the shipping business) or extra-ordinary losses (although it was an incident which is in the normal course of business.

As for collecting on the insurance, that would be recorded in extraordinary income.

I'm sure you'll get other opinions, equally correct. At the end of the day, you just need to reduce your income. If the insurance comes in, well you'll need to increase your income. Where it ends up on the P/L is more just presentation.

I recommend reading this article from McGladrey. http://mcgladrey.com/content/mcgladrey/en_US/what-we-do/services/assurance/financial-reporting-resource-center/accounting-for-disaster-insurance-recoveries.html

The loss due to the damage should be recorded in the period that it occurred, probably as a cost of sale. Income from insurance reimbursement should only be recorded when realization of the claim is deemed probable, probably as other income.

I agree with the others to book the loss in the period incurred. Regarding the insurance recovery, I wouldn't even record that when you deem it probable since it is a gain, not a loss, contingency. I would record that recovery (other income) when the insurance company issues its decision.

Also, in light of the decision to do away with the"extraordinary" classification, I would stick to your normal fsli's.