Accrued Revenue Example

Example 1

On December 19, 20x1, Entity A sold 200 units of merchandise at $15 per unit on account.

On January 5, 20x2, Entity A collected $3,000 cash.

Prepare journal entries on the following dates:

December 19, 20x1

Accounts receivable

3,000

   Sales revenue

3,000

[Note]

$3,000 revenue recognized on December 19 is accrued revenue, since revenue is recognized before cash is received.

January 5, 20x2

Cash

3,000

   Accounts receivable

3,000