What is unbilled training fees, Accounting Basics

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Q. What is Unbilled training fees?

A company may possibly perform services for customers in one accounting period while it bills for the services in a different accounting period. Micro Train Company carries out USD 1000 of training services on account for a client at the end of December. Ever since it takes time to do the paper work Micro Train will bill the client for the services in January. The essential adjusting journal entry at 2010 December 31 is:

1458_What is Unbilled training fees.png


Subsequent to posting the adjusting entry the T-accounts appear as follows

89_What is Unbilled training fees1.png

The service revenue emerge in the income statement the asset accounts receivable appears in the balance sheet.


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