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Action	Accrual	Cash Basis
Deposit is recorded	DR......Receivables (Dep) CR.....Unearned Revenue	No accounting effect
Invoice is created	DR.....Receivables (Inv) CR.....Revenue	No accounting effect
Deposit is applied to an invoice	DR.....Unearned Revenue CR.....Receivables (Inv)	No accounting effect
Invoice is adjusted to write off bad debt	DR.....Bad Debt CR.....Receivables	No accounting effect
Payment is received from customer against an invoice	DR.....Cash CR.....Receivables	DR........Cash CR........Revenue
Credit memo is created against an invoice	DR.....Revenue CR.....Receivables	No accounting effect
Table 1 - 98. (Table 1 of 1)

Note: The only time a journal entry is created is when cash is actually received. The revenue account is credited at this time. The intermediate receivables account is never debited or credited in cash basis accounting. The net effect remains the same in both cases (for example, when a transaction is closed, cash is debited, and revenue is credited).

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