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    bethofmary's Avatar
    bethofmary Posts: 6, Reputation: 1
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    #1

    Aug 30, 2009, 05:27 PM
    Revenue journal entries.
    On Sept. 8th A company received $10,000 cash from McBryan Construction Co. as advance payment on rental equipment.

    My question is would that be a debit to cash and a credit to unearned rental fees or would the credit be rental fees earned.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 30, 2009, 05:52 PM

    If they've paid you in advance of providing anything, then you haven't yet earned anything. That's what we use that unearned account for - it's a liability because the service or goods is still due and as yet unearned.
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