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  • 1.  New Revenue Recognition

    Posted 13 days ago
    ​​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.

    Thanks!

    Melissa Wood
    Foundation Software


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