Accrued Revenue MADE EASY | Adjusting Entries

Рет қаралды 188,932

Күн бұрын

💥Adjusting Entries Cheat Sheet → accountingstuff.com/shop
🖊Adjusting Entry Practice Questions → accountingstuff.com/practice-...
Accrued Revenue, aka. Unbilled Revenue is an adjusting entry that is very common in service businesses. In this video, you'll find out what Accrued Revenue means, and how it works using Journal Entries and T Accounts.
I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...
▪ Intro to Adjusting Entries → • Prepayments and Accrua...
▪ Prepaid Expenses → • How Prepaid Expenses W...
▪ Deferred Revenue → • Deferred Revenue Expla...
▪ Accrued Expenses → • Accrued Expenses Broke...
▪ Accrued Revenue → • Accrued Revenue MADE E...
🔝 CLOUD ACCOUNTING SOFTWARE
▪ QuickBooks Online USA (FREE TRIAL/DISCOUNT) → geni.us/jA9N
▪ QuickBooks Online Canada (FREE TRIAL/DISCOUNT) → geni.us/bNN7
▪ Xero (FREE TRIAL) → xeroamericas.grsm.io/ck90eoq1...
FAQ
▪ My Favourite Accounting Book for Beginners → geni.us/5mKR7m
🚶FOLLOW ME ON
▪ Instagram → / accountingstuff
▪ TikTok → / accounting_stuff
▪ Facebook → / thisisaccountingstuff
LEARN ACCOUNTING BASICS FOR FREE
▪ The Full Playlist → • ACCOUNTING BASICS for ...
________________________
DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
________________________
#accounting #adjustingentries #accountingstuff

Пікірлер: 276

@AccountingStuff 4 жыл бұрын

That's a wrap on the Adjusting Entries mini-series! You can find links to each video right here: ▪ Intro to Adjusting Entries → kzfaq.info/get/bejne/fpZ-atenvduunIk.html ▪ Prepaid Expenses → kzfaq.info/get/bejne/iKtnqtWX0ayzd3U.html ▪ Deferred Revenue → kzfaq.info/get/bejne/fJeqgbRi3M3FZ6M.html ▪ Accrued Expenses → kzfaq.info/get/bejne/b8eKaaZ0z5PNlac.html ▪ Accrued Revenue → kzfaq.info/get/bejne/bc-SgZVmu6nadps.html ▪ WHOLE PLAYLIST → kzfaq.info/sun/PL5zKSeS09l31dhHvwhS4sVjcckQSPGqtp

@richardfrazer3432 2 ай бұрын

Error, "Accrued Revenue..."earnt for the client we haven't built for client,". Should be "billed"?

@AccountingStuff 2 ай бұрын

Yes it should be billed@@richardfrazer3432

@bellamatela4273 4 жыл бұрын

I must say, you are good! You explained in less than 10 minutes what took my lecturer 2 hours.

@AccountingStuff 4 жыл бұрын

Thanks Bella!

@kgabisopoto5039 2 жыл бұрын

Honestly

@sallyho146 10 ай бұрын

@@AccountingStuffwe don’t have an accrued account. So I booked it in the Other AR non ledger account. My accounting manager boss told me to book it in the AR sub ledger account 😂. Btw, where do you group your accrued revenue account in assets section? Under current asset section or else

@jacksingarajah 4 жыл бұрын

You gotta respect the filming and editing put into this. Respect my guy

@AccountingStuff 4 жыл бұрын

Cheers Jack :)

@niloykarmaker1024 4 жыл бұрын

HANDS DOWN!! THIS IS THE BEST KZfaq CHANNEL! PRODUCTION LEVEL......INTERACTION LEVEL....HELPFUL!! WHAT MORE I CAN ASK FOR! LOVE FROM BANGLADESH!

@AccountingStuff 4 жыл бұрын

Haha, thanks mate! Best wishes from Canada

@niloykarmaker1024 4 жыл бұрын

@@AccountingStuff so you are from CANADA? I thought you are an AMERICAN.

@a.c.n.9421 4 жыл бұрын

Seriously!!!

@AccountingStuff 4 жыл бұрын

@@niloykarmaker1024 I'm from the UK but I live in Canada

@niloykarmaker1024 4 жыл бұрын

@@AccountingStuff hmm.. now it goes with your akcent.

@elieldan1997 7 ай бұрын

why do accounting teachers not explain things like this, so simple, so understandable, so clear

@AccountingStuff 7 ай бұрын

Glad you found it useful!

@kondwanibarton1391 Жыл бұрын

OMG! Where have you been all my life 💃💃 Thanks

@dalenapier2956 2 жыл бұрын

I'm making accrual adjusting entries for an audit, and the accrual expense/revenue videos are priceless in helping me take the right steps. Thank you!

@gordwilkes 2 жыл бұрын

This is terrific James. I've been struggling with adjustments on the old multicolumn worksheets. So showing us your T accounts has been so helpful to my learning. GREAT VIDEO!

@roxy505 2 жыл бұрын

You're a fantastic teacher. I wouldn't be making it through my course without your videos. Thank you!

@jakeelder8830 2 жыл бұрын

You are a literal life saver. I appreciate you taking the time to explain the concepts slowly and carefully, wouldn't have made it through ACC2430 with out you thank you!

@ilayda9067 4 жыл бұрын

I LOVE your examples, really makes the things way easier to remember!

@AccountingStuff 4 жыл бұрын

That's great to hear, thank you!

@TheBandi17 4 жыл бұрын

Man I love you, you're a legend. Honestly don't know what I would have done at my exams without you. And I start enjoying accounting now ! Thank you so much

@AccountingStuff 4 жыл бұрын

Cheers Cyril! Hope the exams went well!!

@lindadowling6702 2 жыл бұрын

I am taking Accounting courses online and I am so happy to have found your channel. Seeing it as you put it up in your videos are a huge help! Thank you.

@sallychen4955 4 жыл бұрын

I have to say your channel is the best one I found during this quarantine !! Thank you very much for helping !!

@AccountingStuff 4 жыл бұрын

Thanks Sally! I'm happy to help. Hope you're keeping safe!

@kimzzz3 3 жыл бұрын

I just want to say you helped me a lotttt, I already watched half of your videos. You were able to explain accounting stuffs easily. More videos to come James, thank you so much. More subscribers to come🥳

@AccountingStuff 3 жыл бұрын

Thanks Kim, more videos are coming soon :)

@Jendabendaify 3 жыл бұрын

Absolute legend this man. Explaining things in simply in entertaining fashion. Will definitely buy the cheat sheet. My favorite YT channel!

@AccountingStuff 3 жыл бұрын

Thanks and cheers for your support!

@MrsEjze 4 жыл бұрын

THANK YOU SO MUCH.. You have no idea how much these videos have helped me. I bought the cheat sheet and I am sure I will use it tons. BEST VIDEOS ON LINE

@AccountingStuff 4 жыл бұрын

No worries, it's great to know that the videos have helped you out. I hope you find the cheat sheet helpful!

@soemoe8237 4 жыл бұрын

You made accounting very interesting. You're a great teacher. Very clear, precise and entertaining. Your channel is the best accounting channel on KZfaq. Thanks, James! This series hasn't finished yet, right?

@AccountingStuff 4 жыл бұрын

Thanks Soe! Yes, the Adjusting Entries Mini-Series is complete. But plenty more Accounting vids coming soon

@lydiathornton7914 4 жыл бұрын

You are Awesome!!!! I always had a hard time understanding accounting...till now. You are clear and concise and NEVER boring!!!! Not to mention ur VERY EASY ON THE EYES! Thank you 😊 so much.

@AccountingStuff 4 жыл бұрын

No worries Lydia, you are very welcome!

@theMOCmaster 4 жыл бұрын

This is as far as my class goes thanks for everything!

@AccountingStuff 4 жыл бұрын

No worries, you're very welcome! All the best

@charnissepienaar7493 3 жыл бұрын

Just love your vibe and energy and make Accounting seem a little easier

@AccountingStuff 3 жыл бұрын

Thanks Charnisse, all the best with your studies!

@pabloavila6397 3 жыл бұрын

Accounting aside, these videos are insane. The amount of effort being put into them is remarkable. Congrats homie

@AccountingStuff 3 жыл бұрын

Cheers Pablo!

@Niaax_09 4 жыл бұрын

Thank you so much!!! Your vids got me an A in my midterms. I have my finals tomorrow and I’m super nervous but your videos are helping a lot!!!!!!

@AccountingStuff 4 жыл бұрын

Good luck!!!

@wayatanka6085 2 жыл бұрын

Thanks for all the hard work you put into explaining accounting. Super impressed with how effective and efficient your teaching style/ accounting logic is.. really helped out. This is a subject in finance that often gets underappreciated yet it's essential. Much respect

@AccountingStuff 2 жыл бұрын

Thanks for your kind words!!

@GlimmerEffect 4 сағат бұрын

Wow! You are such an outstanding teacher! Thank you x1000!

@AccountingStuff 3 сағат бұрын

Happy to help!

@NoNameLondon 4 жыл бұрын

Man, this is amazing! I need to watch over this again tomorrow. Thanks for recommending that video. I understand everything, although, it needs to sink in. I can't show enough appreciation. Thank man! (I'll check out the PFD too)

@AccountingStuff 4 жыл бұрын

No problem, sometimes it helps to look at a few scenarios to fully appreciate a concept.

@tevitatalanoa9880 4 жыл бұрын

I just bought adjusting entries cheat sheet.. Really useful. Thanks bro!! 💯💯 Happy to support ur work!

@AccountingStuff 4 жыл бұрын

Thanks for your support! I really appreciate it

@AC_Blanco 4 жыл бұрын

Bought! Will come very handy next year for Financial Reporting module 👍🏻

@AccountingStuff 4 жыл бұрын

Legend!

@flaviofeniello 4 жыл бұрын

Each video is very useful to improve my English and in particular Accountung English! Many thanks, greetings from Italy

@AccountingStuff 4 жыл бұрын

Glad to hear it Flavio! All the best from Canada

@bg048 3 жыл бұрын

Love your videos! This channel definitely needs more attention! It would be awesome if you made a video on the closing process!

@AccountingStuff 3 жыл бұрын

Thanks for your suggestion!

@palhellum1806 2 жыл бұрын

This series has been extremely helpful - thank you so much

@AccountingStuff 2 жыл бұрын

You're very welcome!

@yveschristiandjenzou5492 2 ай бұрын

Thank you. This video helps me a lot. before I watch it all was mixed up in my head but know it’s all clear and my work is becoming very easy.

@AccountingStuff 2 ай бұрын

Great to hear it's making sense :)

@191125 3 жыл бұрын

Just bought your cheat sheet bundle. Please continue showing examples in quickbooks online for the small business owners out here watching your videos. Thanks!

@AccountingStuff 3 жыл бұрын

Thanks for supporting the channel!! I appreciate it. Cheers for your suggestion

@kirolosmakram881 2 жыл бұрын

yo i know you might not see this but you made me sooooooo happy helped me alot for my exam tomorrow shared it with my friends thay absoloutly loved it

@carolynespancho4415 4 жыл бұрын

bought it! its been very helpful. Thank you for sharing such knowledge.

@AccountingStuff 4 жыл бұрын

Awesome, thanks Carolyn! All the best

@maiphuong5168 21 күн бұрын

Thank you so much. Im struggling a lot with this adjustment through book. Easy to understand now

@AccountingStuff 21 күн бұрын

Great to hear it's making sense :)

@sandyvargas8915 9 ай бұрын

Just purchased all your sheets 🎉Thank You!!

@AccountingStuff 9 ай бұрын

Thanks for your support!

@AndreiQuintana 3 жыл бұрын

this is such a blessing. Thank you so much!

@HectorGarciaCPA 4 жыл бұрын

purchased it... love that you are monetizing!

@AccountingStuff 4 жыл бұрын

Cheers Hector!

@aaglobalfx 2 жыл бұрын

i enjoyed this one, the cloud in my mind started to clear on this episode. Thank you!

@AccountingStuff 2 жыл бұрын

No problem :)

@rajmehta4883 2 ай бұрын

fantastic video. You did a great job making this really simple to understand

@AccountingStuff 2 ай бұрын

Thanks, glad you enjoyed it :)

@edmerced1522 Жыл бұрын

Wow excellent work in the explanation. It’s so much easy to get this when you said “hold it temporarily in the BS”

@AccountingStuff Жыл бұрын

Great to hear it's making sense :)

@md.modasserhossain8040 3 жыл бұрын

Thanks James for clarifying the issue which was once really confusing for me.

@AccountingStuff 3 жыл бұрын

No problem, I'm happy to help :)

@dorelkarafili3 4 жыл бұрын

You are amazing man, this videos are so much helpful. Ur doing a great job.

@AccountingStuff 4 жыл бұрын

Thanks Dorel!

@angelakim1275 2 ай бұрын

awesome explanation! Thanks!!!

@AccountingStuff 2 ай бұрын

No problem, hope it made sense :)

@jamese.jonesjr.1751 5 ай бұрын

Very informative series. I bought the cheat sheet too. Good work ma'man.

@AccountingStuff 5 ай бұрын

Cheers and thanks!

@jamese.jonesjr.1751 5 ай бұрын

You're welcome! @@AccountingStuff

@mannyortiz1039 3 жыл бұрын

I have learned more watching these videos than my lectures.. thank you!!

@AccountingStuff 3 жыл бұрын

No worries Manny, you're most welcome :)

@subhanarshad9618 3 жыл бұрын

Bro you are the Great Clear all the query

@AccountingStuff 3 жыл бұрын

Thanks buddy :)

@Foodchapters 2 жыл бұрын

Explained very nicely and simpler way

@AccountingStuff 2 жыл бұрын

Thanks!

@sameedagha5133 4 жыл бұрын

Love this channel. Waiting for a video on 'Inventory'.

@AccountingStuff 4 жыл бұрын

Cheers Sameed, and thanks for your suggestion!

@abirsadafofficial 4 жыл бұрын

Please make a video on UNEARNED REVENUE VS OUTSTANDING REVENUE! LOVE FROM BANGLADESH IN ADVANCE

@AccountingStuff 4 жыл бұрын

Hey Abir, cheers for the suggestion!!

@andreicudisal2731 2 жыл бұрын

I'm currently a 12th grade student learning accounting. Your videos helped me a lot in understanding the complexity of the subject. I've also got pretty high grades so thank you!!

@AccountingStuff 2 жыл бұрын

Congrats on your high grades! Great to hear it's going well for you :)

@peterpark6066 2 жыл бұрын

Great Stuff! You are one talented guy.

@AccountingStuff 2 жыл бұрын

Thanks for your kind words!

@af1132racing 2 жыл бұрын

Just got through this whole mini series, wow, very nice! I can’t help but want to find some middle ground between the cash basis and the accrual basis, but not that modified cash/accrual basis that government entities use. Here is an idea that I cannot get out of my head: IBR basis. The IBR basis (Invoice-Bill-Receipt basis) recognizes revenue when an invoice or sales receipt is generated and recognizes expenses when a bill or purchase receipt is generated. This would eliminate the need for these adjusting entries, and would place the focus back on the accounting triggers themselves. I argue that the focus should be placed on the accounting triggers, especially when focusing on the accruals side of this mini series, and the reason is that for those who have seller/buyer relationships on account, you wouldn’t and shouldn’t expect cash to change hands until after an invoice/bill is created. I’m interested to hear the communities response!

@usalem 4 жыл бұрын

Hi,,, you are providing a great material especially for someone like me know nothing about accounting but with your videos i think i know much more, I have bought the adjusting entries cheat sheet, it is great, but I request you please to make more detailed cheat sheets for all 4 types of adjusting entries, for example for the Pre-paid expenses , how it is recorded, and adjusted and readjusted and what accounts are affected in both income statement and balance sheet .... this would be great for us to understand it more and memories it :) Thank you

@AccountingStuff 4 жыл бұрын

Hey Usama, thanks for your suggestion! I'll look into that

@josephriverajulierichards7897 2 жыл бұрын

Thank you, this was extremely helpful and I appreciate you putting this out

@reemathakkar223 Ай бұрын

Thanks alot from India..I hope i can use the understanding in cpa exams too

@AccountingStuff Ай бұрын

The basic concepts that I cover in my videos are applicable everywhere

@ankitabhuyan4848 4 жыл бұрын

Very informative, helpful videos . Thank you for making it easier to me :)

@AccountingStuff 4 жыл бұрын

No worries Ankita! It's great to hear that accounting is becoming easier for you.

@merveilmeok2416 4 жыл бұрын

The example is genial. Good job.

@AccountingStuff 4 жыл бұрын

Thanks buddy

@FRANKWHITE1996 3 жыл бұрын

Well explained. Thanks

@CamiloSanchez1979 3 жыл бұрын

Fantastic playlist, thank you Sir

@AccountingStuff 3 жыл бұрын

Thanks!

@leovelynomasdang2035 3 жыл бұрын

Favorite Accounting Channel :)

@AccountingStuff 3 жыл бұрын

Thanks Leovelyn!

@vinitpatel7517 4 жыл бұрын

Explained it better than Becker for FAR!! Thanks!

@AccountingStuff 4 жыл бұрын

Thanks Vinit!!

@jeremygracias 4 жыл бұрын

Keep going mate, i like ur thumbnails and contents

@AccountingStuff 4 жыл бұрын

Thanks Jeremy, I don't plan on stopping anytime soon

@srinurafiqah2803 4 жыл бұрын

Do cover irrecoverable debts! Your videos are really helpful for my accounting exams!!

@AccountingStuff 4 жыл бұрын

Thanks for the suggestion, I'll keep it in mind!

@christinaahn1887 3 жыл бұрын

Thanks for another great video! :)

@AccountingStuff 3 жыл бұрын

You're most welcome :)

@user-wb8pd7tm3y 8 ай бұрын

You’re a life saver!

@AccountingStuff 8 ай бұрын

Thanks! Glad I could help

@francosannan4681 3 ай бұрын

Thanks a Lot - Perfect Videos

@AccountingStuff 3 ай бұрын

You're very welcome :)

@haroldvickers5112 3 жыл бұрын

Solid 10/10 thank you so much

@AccountingStuff 3 жыл бұрын

Cheers Harold :)

@woeichernglow739 2 жыл бұрын

bought the cheat sheet!

@AccountingStuff 2 жыл бұрын

Thanks for your support!

@adrianmonge5963 4 жыл бұрын

very nice video. One thing that should be mentioned is that Revenue is generally booked when there is certainty and agreement from the client and the service has been provided. You may have done work, but if there is no acceptance, in any form, such as a contract or statement of work, revenue would be compromised and you would not be able to record it.

@AccountingStuff 4 жыл бұрын

True, I might have to make a another video on Revenue Recognition

@atdepth000 11 ай бұрын

@@AccountingStuffWhy did you record revenue in June when there wasn't an invoice yet?

@pintotazzo 4 жыл бұрын

Great work dude

@AccountingStuff 4 жыл бұрын

Cheers :)

@TheRealFlacus 4 жыл бұрын

you should do financial statement analysis next... vertical & horizontal analysis, etc.

@AccountingStuff 4 жыл бұрын

Hey Giancarlo, cheers for the suggestions!!

@hlengiwedakile5861 2 ай бұрын

Thank you for helping me obtain my degree

@AccountingStuff 2 ай бұрын

Congrats on getting your degree! That's all you :)

@AhmedAli-hp5lv 3 жыл бұрын

Nice job

@AccountingStuff 3 жыл бұрын

Thanks Ahmed!

@HOMEFOODMANIACS 4 жыл бұрын

thanks for the video

@hazvineigomba2393 Жыл бұрын

You are the best

@annakelly7214 4 жыл бұрын

Hi, brilliant stuff, very helpful while I study financial accounting. Any chance for similar videos on IRRECOVERABLE debts and irrecoverable debts paid as well as ALLOWANCES for Receivables?

@AccountingStuff 4 жыл бұрын

Hey Anna, thanks for your suggestions!

@naif7225 Жыл бұрын

The best !!!!!!!!

@teeblack6629 3 жыл бұрын

Hello James , your videos have helped me greatly in my studies. Please can you do a video on accrual /prepayment accounting for when you have a bill that’s for 3 months. Say you’ve received a bill for jan, feb, and March , you are billed in March for the three months. How do you account for each month in the books, and adjusting for them. The question papers I’ve used to practice on and tested on, do not specify exactly when the company pays the bill. It gives you when they year ends but that’s it. Say it’s feb, do you account for January’s “ earned” part of the bill in the books or do you account for both jan and febs “earned” portion of the bill? In the final accounts. I’ve been puzzled by these type of questions whether it’s accrued or prepayment adjustments in the final accounts. Please can you help.

@AccountingStuff 3 жыл бұрын

Thanks for your request!

@sunriseeternity300 3 жыл бұрын

brilliant

@concerned_2023 3 жыл бұрын

Not sure why someone would do a GL entry instead of issuing an invoice if the work completed in a period, but I can see if the work flowed over multiple periods particularly year end where a estimate of earned income should be recorded. Then there is the issue of sales taxes. Record them as revenue is earned or when the invoice is issued? I must admit that I have gotten lazy in monthly adjustments, but by watching your videos it offers a refresher of what we should be doing if rules are to be followed.

@AccountingStuff 3 жыл бұрын

Hey Rick, sometimes you aren't allowed to bill until you hit a certain milestone. Or the invoice doesn't get approved on time. It happens surprisingly often actually. Sales tax is recorded once the invoice is issued.

@slurpee7530 3 жыл бұрын

Hi. I have a question.Then at the end of this Example after received the cash i need to post 3 journal entries or just 2 ?

@carlosmartinez-qr2ot 4 жыл бұрын

Just bought totally worth it I actually got an Ace in my exam from watching your videos

@AccountingStuff 4 жыл бұрын

Congrats Carlos!! So happy that you aced your exam!

@jayzee2634 4 жыл бұрын

My guy, you deserve all the subscribers! Absolutely amazing videos bro, my prof couldn’t even teach like this. Btw I saw that you used Canadian currency in another video haha, best wishes from Ontario!

@AccountingStuff 4 жыл бұрын

Cheers mate! Haha yes, I'm in Vancouver so it's all I have available. All the best!

@sapsalingpusacattalkmaykwe1556 2 жыл бұрын

Genius!

@allu76d 3 жыл бұрын

👏👏👏 Great

@AccountingStuff 3 жыл бұрын

Thanks :)

@Alphawaveshipping 12 күн бұрын

Hi James i am abit confused with entry of sales invoice, when the sales invoices is posted then revenue will be credited again in july and it will be double entry unless we debit revenue and credit the accured revenue to nullify the effect.Please correct me if im wrong.

@NaveedKhan-ic3km Жыл бұрын

Good Explanation but adjustment entries always difficult in modern accounting softwares.

@tomleslie3807 4 жыл бұрын

Hi James, can you do a video about adjusting entries for bad debts and doubtful debts allowance?

@AccountingStuff 4 жыл бұрын

Cheers for your suggestion Tom!

@via624 4 жыл бұрын

watching this last minute at 12am so i don't fail tomorrow HDKSJS

@AccountingStuff 4 жыл бұрын

Good luck in your exam!!

@Michael.design 4 ай бұрын

So do I understand correctly that if one bills/sends an invoice at the same moment of the delivery of the goods or services it will be a debit of the accounts receivable and there would be no accrued revenue? Or do they exist next to eachother?

@darkshinigami9438 3 жыл бұрын

Can you please make a video about account receivables that are not received and the bad debt thing?

@AccountingStuff 3 жыл бұрын

Thanks for your request!

@berhanukebede5763 4 жыл бұрын

tanx bro

@AccountingStuff 4 жыл бұрын

No worries Berhanu!

@hariprasadradhakrishnan8967 Жыл бұрын

Those charts which you are showing. I would like to purchase them. Can you make them available for us to buy in India. In Indian currency?? Thanks

@user-wi9nn6dz8w 7 ай бұрын

How is it different from sales in excess of invoicing/billing for point-in-time revenue recognition?

@morgangadson3860 4 жыл бұрын

can you discuss closing journal entries?

@AccountingStuff 4 жыл бұрын

Hey Morgan, thanks for your suggestion!

@maressamelo7635 Жыл бұрын

Hello, I have a question. If the company received a good in June, the company paid the invoice in June but by error the invoice was posted only in July. Should I do a adjusting entry? Thanks

@aam7486 4 жыл бұрын

can u do a video on how to determine understated or overstated adjusting entries? They're so confusing

@AccountingStuff 4 жыл бұрын

Hey Skylar, thanks for your suggestion. I'll give it some thought

@cellomon09 Жыл бұрын

Possible dumb question: Would AR also include the amounts of open invoices for future goods/services? Example: a customer orders a $500 plane ticket that departs in September, and I send a net 30 invoice in July. Would you debit AR and credit unearned revenue? It just seems odd to describe an invoice for future services as an “asset”. Am I missing something?