When a customer pays in advance for a product or service, the advance payment received by the company is recorded as:
A debit to a liability and a credit to a revenue account.
A debit to an asset and a credit to a liability account.
A debit to an asset and a credit to a revenue account.
A debit to a revenue and a credit to an asset account.
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
