What is the accounting double entry when service is provided for a prepaid account?
Answer:
When your customers pays you in advance, you'd:
Dr Cash xxx
Cr Unearned service revenue xxx (liability item in balance sheet)
When you've provided the service, you'd
Dr Unearned service revenue xxx
Cr Service revenue xxx (revenue item in income statement)
Related answers: - What is the accounting journal entry for service performed on account for 2500.00? debit credit cash 2500sales 2500
- What accounts are affected when services are provided on account? Accounts Receivable - Debit Service Revenue - Credit
- Services rendered in accounting is what account? revenue account
- Who introduces double entry accounting? Double Entry Accounting is introduced by Lucas Paciolli
Can you answer these? 