When the contract is completed, the account Customer Deposits will be debited for the amount of the down payment, the sale will be recorded with a credit, and Cash or Accounts Receivable will be debited.
What is the entry for the down payment from a signed contract?
Free Financial Statements Cheat Sheet
- What is the entry when a contract is signed?
- Where is a contract with a customer reported on the balance sheet?
- Why does commitment and contingencies appear on the balance sheet without an amount?
- What is deferred revenue?
- How do I record a loan payment which includes paying both interest and principal?
- What is a lump sum payment?
To learn more, see the Related Topics listed below:
Related TopicsBalance Sheet Debits and Credits Adjusting Entries Bookkeeping
Related Business Forms