Two usersBuilding an Accounting Ledger · Day 5
Post the customer's annual payment to the ledger
Without the course
“Record the customer's $12,000 payment as revenue for this year.”
Credits $12,000 to revenue immediately upon cash receipt.
After this course
“Record the customer's $12,000 payment, specifying if service is delivered or deferred.”
Credits $12,000 to Deferred Revenue until service is earned.
Match revenue to when service is delivered, not when cash arrives.