USA Unearned AR

[Max2018]

Dear all,

How can I record an unearned income when no payment has received yet

example:

Invoice $2000

Cash $1000
Customer Deposit $1000 (liability)

no service or product is delivered yet(this might take over 6 months to recognize the sale)

How can I account for Account Receivable for the remaining $1000,- and not consider as revenue. and this should not be taxable until the sales is recognized.

Thank you
Max

 

[Drmdcpa]

It is not an account recievable if you already recieved the payment. It is either customer deposit or unearned revenue; either of which is a short term liability. When earned transfer from liability to revenue.

 

[atakmaz]

Assuming you already received the $1000 Cash, the entry should be:
Cash $1000
AR $1000
Unearned Revenue ($2000)