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If you sell goods that have yet to be delivered you would create an account for unearned revenue.

Unearned revenue is a liability account because you are still liable to produce those goods so if you are increasing the amount of unearned revenue you would credit the account, however if you are decreasing the unearned revenue, meaning you have supplied the goods to the customer, then you would debit the account.

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โˆ™ 2010-05-07 23:40:29
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Q: Is Unearned revenue credit or debit?
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Related questions

Is unearned revenue a credit or debit?

A credit


How do you record unearned revenue?

Debit to Cash (asset) Credit to Unearned Revenue (Liability)


Is Decrease in Unearned Rent Revenue a credit or debit?

Debit


What is the entry unearned revenue?

[Debit] Cash / bank [Credit] Unearned revenue


What is the equation once unearned revenue has been earned?

[Debit] Unearned revenue [Credit] Sales revenue


What could be journal entries for unearned revenue?

[Debit] Cash / bank xxxx[credit] unearned revenue xxxxwhen revenue earned actually[debit] unearned revenue xxxx[credit] sales revenue xxxx


What is the journal entry of cash collected from sale of tickets and recorded as unearned revenue?

Cash collected from sales of tickets should be charged to sales rather then unearned revenue so the correct entry is as follows: [Debit] Unearned Revenue xxxx [Credit] Sales revenue xxxx


When payment is received for services not yet rendered no entry is recorded until that service has been rendered?

When payment received without services: Debit Cash / bank Credit Unearned revenue When services rendered: Debit Unearned Revenue Credit Services revenue


Is unearned service revenue debit or credit?

Unearned services revenue is that part of revenue which is not yet earned and as it is not yet earned then it is liability for business and hence like all other liabilities it has credit balance as normal default balance.


Do unearned fees go into an income statement?

Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)


Unearned revenue is initially recognized with a?

credit to unearned revenue


Is unearned revenue debit or credit?

Unearned revenue is a credit. It's a liability on the balance sheet, representing sales that you have gotten paid for, but have not yet earned. Unearned revenues include things like sales deposits received from customers and other payments made in advance by customers.


What is the journal entry for payment which is not earned?

debit cash / bankcredit unearned revenue


Journal entry for income received in advance?

Debit customer depositsCredit unearned revenue


What is the journal entry for revenue earned during the month included 6000 cash and 5000 on account?

cash debit with 6000 and unearned revenue is 5000 credit and and account payable credit


What is the journal entry of payment received in advance?

Debit advance cash receivedCredit unearned revenue


What is the journal entry for prepaid income?

The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.


Is unearned revenue a credit balance?

Yes, Unearned revenue has credit balance and it is liability for business until it is actually earned.


When a product or service is delivered for which a customer advance has been previously received what is the appropriate journal entry?

[Debit] Unearned revenue [Credit] Sales revenue


Is revenue a credit or debit?

Revenue is income or a credit.


Is revenue a debit or a credit?

Revenue is income or a credit.


Is deferred revenue a debit or credit?

debit


Is service revenue a credit or debit?

Service Revenue is credit in nature because it is an income.


What is the journal entry for unearned income?

debit unearned incomecredit services liability


Is Revenue accounts increase by credit or debit?

revenue accounts increase by credit

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