What is the journal entry to recognise revenue?

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Solution

A revenue recognition account is when an entry is recorded only when the revenue is being paid and earned, and it is not related to when the cash is collected.

For example, a parking lot cleaning agent can recognise their revenue the moment they finish the cleaning services each day but their actual revenue earned can be several days from the day of cleaning.

Also read:

Average Revenue Formula

Marginal Revenue Formula

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Similar questions

When should revenue be recognised? Are there exceptions to the general rule?

what will be the journal entry for following:

Expenses on issue of debentures amounted to rs 5000 were to be written off.Pass journal entry.

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