Journal Entry For Upfront Deposits
An event planning company requires a 50% upfront deposit for a party, with the remaining 50% due on the day of the event. If the event occurs in a subsequent accounting period, which accounts are debited and credited on the day the deposit is received?
A
Cash is debited and Accrued Revenue is credited.
B
Accounts Receivable is credited and Sales is debited.
C
Cash is credited and Accrued Revenue is debited.
D
Accounts Receivable is debited and Sales is credited.