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View Full Version : How to record revenue where part is received in the current month & the remainder the


kraquel
Mar 16, 2008, 06:22 PM
I'm trying to check my grandaughter's homework and I need to know What is the entry for recording earned revenue of $8,000 of which $3,000 is collected in cash and the balance is due the following month.

morgaine300
Mar 20, 2008, 12:28 AM
If you are "checking" someone's homework, then you should include their answers so that we may check them, since we're not here to just give answers away.

Earnings are recorded in a revenue account, regardless of whether the cash was received or not. The accrued method states that revenues are recorded when earned. If $8000 was earned, then it's recorded as revenue. The $3000 collected in cash is taken literally -- they received $3000 in cash. The balance of $5000 is due to the company because it still needs to be paid, making it a receivable.