deposits record to sales

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Question:

Cash basis is it wise to have deposits made go to sales on your P & L Statement

Answer:

All the sales (or revenue items) are to be posted to Income part of P&L Report. They will all end-up eventually counted on cash basis. It is only a matter of timing difference.

Accrual Basis:

  • Customer Invoice > A/R

Cash Basis:

  • Customer Invoice > A/R > Receive Payment > Make Deposit to Bank
  • Sales Receipts > Make Deposit to Bank

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