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-   -   Partial advanced payment on unearned revenue (https://www.askmehelpdesk.com/showthread.php?t=249279)

  • Aug 15, 2008, 03:23 PM
    mnsmith
    Partial advanced payment on unearned revenue
    The issue is receiving a $50 dollar advance payment on a $250 future service, and my thought is to debit: cash for the $50, debit service revenue for $200 and credit unearned service revenue for the $250. However, I can't find anything similar in my text book, so is this correct?

    Thanks,
    mnsmith:confused:
  • Oct 18, 2008, 05:11 PM
    pready

    Debit Cash for 50
    Credit Unearned Service Revenue for 50

    When the service is provided you would do the following transaction:

    Debit Cash (if cash Received) or Accounts Receivable (if on account) or a combination of the two for 200
    Debit Unearned Service Revenue for 50
    Credit Service Revenue for 250

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