Delivering a service the customer paid in advance

Transaction

Last month a customer paid a catering company $950.00 in cash in advance for an event, and the company credited Unearned Revenue. The deposit covers the whole price. Today the company caters the event.

Assumptions: Catering services are not subject to sales tax here.

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

No lines yet. Choose an account above.

Credit

No lines yet. Choose an account above.

Debits $0.00Credits $0.00