tsisenar
Sep 24, 2008, 09:43 AM
This has me stumped,
I am logging transactions in a general journal. I need to know what account to debit and credit the following transaction.
Entered into a contract with Southside Food Vendors to place vending machines in the waiting room. Fred is to receive 10% of all sales, with a minimum of $200 monthly. Received $200 as an advance payment.
I'm thinking that Vending Machine Revenue would be debit and Cash Credit, but am really uncertain. He is receiving an advance on a business that has yet to make a profit so his Revenue has to be debit somewhere, or would a debit go on Vending Revenue and a credit to Capital?
I am logging transactions in a general journal. I need to know what account to debit and credit the following transaction.
Entered into a contract with Southside Food Vendors to place vending machines in the waiting room. Fred is to receive 10% of all sales, with a minimum of $200 monthly. Received $200 as an advance payment.
I'm thinking that Vending Machine Revenue would be debit and Cash Credit, but am really uncertain. He is receiving an advance on a business that has yet to make a profit so his Revenue has to be debit somewhere, or would a debit go on Vending Revenue and a credit to Capital?