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  • 1.  New Revenue Recognition

    Posted 05-09-2018 11:14
    ​​Hi Everyone,

    I am trying to figure out the logistics of this new standard and how it will impact the journal entry when you bill a customer since retention is no longer considered accounts receivable.   So if you were to bill $100 with $10 retention the current entry is as follows:

                                            DR               CR
    Sales                                                   $100
    Accounts Receivable        $90
    AR Retention                    $10

    So my question is, do you just not bill retention until it is earned or do you still book it this way and just move the AR Retention to a Current or Long Term Asset depending on the job length?

    If any bonding companies or CPA's can chime in, I'd really be appreciative.


    Melissa Wood
    Foundation Software

    Melissa Wood Bachelor's
    Senior Consultant
    Foundation Software
    Phoenix AZ
    (602) 301-1251