Difference between revisions of "Deferred Income"
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Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.) | Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.) | ||
| − | On 6/30/xx of each year do a journal entry to record deferred income. And then do another journal entry on 7/1/xx of each year transferring the income from a liability to revenue recognition. | + | On 6/30/xx of each year do a journal entry to record deferred income. And then do another journal entry on 7/1/xx of each year transferring the income from a liability to revenue recognition. |
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| + | This is an important step to ensure that all of your income is correctly reported and that you are able to keep track of any delayed payments. | ||
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| + | To start, your deferred revenue account number is 2510 | ||
'''Link''': [https://www.youtube.com/watch?v=S0A9Y-K3DJA QB Journal Entry Video] | '''Link''': [https://www.youtube.com/watch?v=S0A9Y-K3DJA QB Journal Entry Video] | ||
Revision as of 19:56, 6 April 2023
Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.)
On 6/30/xx of each year do a journal entry to record deferred income. And then do another journal entry on 7/1/xx of each year transferring the income from a liability to revenue recognition.
This is an important step to ensure that all of your income is correctly reported and that you are able to keep track of any delayed payments.
To start, your deferred revenue account number is 2510
Link: QB Journal Entry Video
