Cash basis & adding credit card to balance sheet

I have a cash basis client that has added her credit card to the balance sheet. No problem there. Her bookkeeper who resigned had been recording credit card payments by just paying the current month charges + interest with no appearance on balance sheet. Balance on card is about $12K.
So when the credit card is added to the balance sheet in Quickbooks, the opening balance is needed, the approximate $12K. That's the credit but what account should the debit go to - retained earnings?? officer's draw??

Expenses

Cash basis taxpayers can deduct credit card charges even if not paid to bank in the year of purchase. The payments to the bank are treated as loan payments.

If current month charges were being regularly paid, where did the carryover balance come from?

How many tax years are you talking about? What type of entity?

"I have a cash basis client that has added her credit card to the balance sheet. No problem there. "

Why? If it wasn't tracked with the business from the beginning, why does it suddenly become a liability of the business?

To makbo

It's a question of that's the way it's always been done. When I received the client (S Corp) three years ago I didn't change the method for CCs. Now the owner (attorney) is doing the accounting due to her bookkeeper's resignation and wants to start with the CC balance on 10/5 which is $12K. So the $12K balance is very old - who knows it may include personal expenses, draws, etc.-NOTE: Attorney is not diligent about keeping only business expenses within S Corp. Lots of year end adjustments for draws due to personal expenses in S Corp.

I do not think you have to have a beginning balance. Whatever the unrecorded balance is start with the most current charge and record backwards until you reached the total unpaid. Third party payee you go by transaction dates.