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

    Mar 7, 2007, 04:16 PM
    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!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Mar 7, 2007, 04:35 PM
    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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