ENTRY A-9, REVENUE IS ACCRUED - 10610
Nature of Transaction:
Revenue earned as of June 30 but not received is accrued.
Journal Entry for General Ledger Account:
Debit:
1600 Provision for Deferred Receivables a/
Credit:
3110 Due to Other Funds or Appropriations c/
8000 Revenue b/
a/ Amount required to adjust this account balance for the amount of revenue earned but not received as of June 30 for fully deferred receivables that are estimated to be collectible within the ensuing fiscal year.
b/ The amount of adjustment in "a" applicable to Revenue.
c/ The amount of adjustment in "a" applicable to Due to Other Funds or Appropriations.
Source:
Documents—Worksheet showing computations of amounts of accounts receivable that probably will not be collected during the ensuing fiscal year. See Explanation.
Explanation:
Throughout the fiscal year, some accounts have been maintained on a fully deferred basis. On June 30, revenue related to these accounts is accrued by adjusting the Provision for Deferred Receivables in the manner stated in "a". Revenue earned in this fiscal year is assumed to be collectible within the ensuing fiscal year unless information exists to the contrary. Therefore, a worksheet showing the computations of amounts of accounts receivable that probably will not be collected during the ensuing fiscal year will be prepared. This uncollectible amount will not be accrued as revenue. All other revenue earned in this fiscal year will be included in this entry.
This accrual entry is partially reversed as of July 1 (see Entry No. A–9R).