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    Aleja's Avatar
    Aleja Posts: 9, Reputation: 1
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    #1

    Nov 24, 2009, 08:38 AM
    Accounting -
    What accounts are received 8000 cash as advance payment on equipmetn rental
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Nov 26, 2009, 10:52 PM

    Revenues that are paid in advanced are liabilities, because you still owe something to the customer. (In this case, the use of equipment, rent.) So it's a credit to a liability account called Unearned Something. Since this is rent, you'd call it Unearned Rent. (Or Deferred Rent.) And receiving cash is receiving cash -- where does that go?
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