Revenue Recognition for July

Accrued accounts receivable and accrued revenue have not been calculated for the 747.50 workfile transaction that was included in the invoiced amount. The system creates this journal entry for reconciliation of the revenue recognition amounts:

G/L Date	Account	Debit	Credit
July 25, 2005	Accrued accounts receivable	747.50
July 25, 2005	Accrued revenue		(747.50)

This illustration shows the T-account postings in the general ledger:

The system uses these AAIs to direct the system to create the journal entries:

• Billing AAI table number 4832 directs the system to the base rules for the accrued accounts receivable account.

  It creates a debit journal entry for the revenue recognition amount.

• Billing AAI table number 4831 directs the system to the base rules for the accrued revenue account.

  It creates a credit journal entry for the revenue recognition amount.