Sometimes you debit unearned rent and credit rent revenue,
Other times you debit acc rec and then credit unearned rent or similar.
I am confused on when you debit the unearned rent and when you debit the acc rec for the unearned rent, please help me get this through my head before my test Monday.

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Originally Posted by bgriffi3

sometimes you debit unearned rent and credit rent revenue,
other times you debit acc rec and then credit unearned rent or similar.
I am confused on when you debit the unearned rent and when you debit the acc rec for the unearned rent, please help me get this throught my head before my test Monday.

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Unearned rent will be debited only when you recorded the original receipt by debiting cash and crediting unearned rent. This done to record the rent earned.

Account receivable is debited when the earned rent has not been received. You debit Accounts Receivable and credit Rent Income (not unearned rent).

There may be a situation when an agreement has been signed and executed. In that case, the rent becomes due from the date of occupation by the tenant and not from the date of the agreement. Assume that an agreement is signed today October 11, 2009 for renting a premises from November 1, 2009.

If the tenant has paid an amount as part of consideration, the amount may be recorded as Debit Cash Credit Unearned Rent. Please remember that consideration must be received to make the contract valid.