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    kraquel's Avatar
    kraquel Posts: 1, Reputation: 1
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    #1

    Mar 16, 2008, 06:22 PM
    How to record revenue where part is received in the current month & the remainder the
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    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.
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