What is the journal entry to record revenue from the sale of a product or service to customers?
Assuming that the revenue can be recognized under U.S GAAP, then the there are two main types of journal entries that would be recorded.
If the customer pays with cash, then the company would debit cash and credit net sales. If the customer pays on credit, then the company would debit accounts receivable and credit net sales.
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Does a debit or credit increase revenue?
To record revenue from the sale from goods or services, you would credit the revenue account. A credit to revenue increases the account, while a debit would decrease the account.
What is the journal entry to record deferred revenue?
Deferred revenue must be recorded when the company receives cash from a customer for work that will be performed in the future (i.e. next month, next year, or evenly over a future period). The visual below gives an example of how the company would record a $10,000 prepayment for work to be performed next month. […]