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Usually yes, many companys will make sales to be fulfilled at a future date and record them in the books as accounts recievable, however, it also must be recorded as Unearned-Income and not as Income. (aka Revenue).
For example, I own a T-shirt business. I have an order that is to be fulfilled in December and paid for at that time also. Say the amount is $1,000. I can record this transaction as
Account Receivable debit $1,000
Unearned Revenue (income) Credit $1,000
Once the order is fulfilled I will have to make adjusting entries to both to show that I not only received the money, but that the "unearned income" is now "earned".
What else can I help you with?
Where will i put the accrued income?
When you accrue income, the debit is to a receivable account such as Accounts Receivable and the credit goes to the appropriate income account, such as Sales.
Is a decrease in accounts receivable debit or credit?
A Credit entry reduces Accounts Receivable
Can accounts receivable normally have a debit balance?
Accounts receivable in an asset account and normally maintains a debit balance. So the answer is Yes.
Does accounts receivalbe carry a credit or debit balance?
Accounts receivable is an asset of company and like all other assets accounts accounts receivable also has debit balance.
Is accounts reciable a credit or debit?
Accounts receivable is that amount which is receivable in future and so it is an asset of company and that’s why like all assets it also has debit balance and shown in current assets portion of balance sheet.
What to debit after increasinf accounts receivable?
the debit will be to the accounts receivable because a debit increases it. the offset account in this entry is usually a revenue account. so therefore a credit to revenue.
What is The debit side of accounts receivable?
invoices
What is the double entry for sale?
Cash/Bank/Accounts Receivable [Debit] Sales[Credit]
Are accounts receivable a debit or credit on trial balance sheet?
Debit
How do you enter rent received and rent receivable in accounts?
Journal Entry for Rent Received:[Debit] Rent Received[Credit] Cash/bankJournal entry for rent receivable[Debit] Accounts Receivable[Credit] Rent Receivable
What is the debit side of an accounts receivable?
payment from customers
Is it okay to debit accounts receivable and crediting equity?
no
