cash received in advance for revenue to be earned plus cash received from customers
Ending Cash balance = $22,400 + $1,315 + $1,200
Deferred Revenue account
Deferred Revenue is a
account with a
Deferred Revenue increases on the credit side and decreases on the debit side.
The ending balance in the Deferred Revenue account is the cash received in advance of
earning minus the amount earned by the end of the period:
Ending Deferred Revenue account = $1,315 - $1,090
Service Revenue account
Service Revenue is a
account with a credit balance.
Service Revenue increases on the credit side and decreases on the debit side.
The ending balance in the Service Revenue account is the amount earned during the
period plus the amount earned by the end of the period:
Ending Service Revenue account = $1,090 + $1,600
Accounts Receivable account
Accounts Receivable is an asset account with a debit balance.
Accounts Receivable increases on the debit side and decreases on the credit side.
The ending balance in the Accounts Receivable account is the amount of services
minus the amount received from customers on account:
Ending Accounts Receivable balance = $1,600 - $1,200