The Receipt of Cash in Advance From A Customer Journal Entry
Whe n the Receipt of Cash in Advance From a Customer is received, then the Journal Entry is to debit the Cash Account and credited the Liability Account (Advance From Customer Account) as the services or goods still to be delivered to customers later on by the company. The entry is shown below: Cash a/c XXX Advance from Customer a/c XXX (Advance Received From Customer) An Adjusting Entry is made when the company actually renders the services or delivered the services to clients. Customer Advances are an example of Unearned Revenue which is not actually earne...