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  • Mar 7, 2007, 04:16 PM
    chimneyrock
    Deferred Revenues and Customer Deposits
    If a business obtains a deposit for $10,000 for a future project that costs $20,000. What is the offsetting entry? Is it cash?

    If a business places $10,000 in deferred revenues as a liability entry, what is the offsetting entry? Is it A/R?

    Thanks!
  • Mar 7, 2007, 04:35 PM
    CaptainForest
    Deposit of 10,000 ahead of time...

    Dr. Cash 10,000 (as cash was received)
    Cr. Unearned Revenue (liability) 10,000

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