Bookkeeping

Unearned revenue is a liability for the recipient of the payment, so the initial entry is a debit to the cash account and a credit to the unearned revenue account. As a company earns the revenue, it reduces the balance in the unearned revenue account (with a debit) and increases the balance in the revenue …

What Is Unearned Revenue and How to Account for It Lire la suite »

Credit sales journal entry refers to the journal entry which is recorded by the company in its sales journal when the company makes any sale of the inventory to a third party on credit. In this case, the debtor’s account or account receivable account is debited with the corresponding credit to the sales account. The …

Credit Sales Meaning, Examples, Record in Balance Sheet Lire la suite »