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    mnsmith's Avatar
    mnsmith Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 15, 2008, 03:23 PM
    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:
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Oct 18, 2008, 05:11 PM

    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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