PRACTICE · LEVEL 1 · ABOUT 5 MIN
Not triedCash in before revenue: a customer prepayment
A customer pays $24 upfront for a service Harbor delivers evenly over 12 months.
Walk the first 1 month through the statements.
Assumptions
- Ignore taxes and the cost of delivering the service.
- Revenue is recognised evenly as the service is delivered.
- No other cash is collected from this customer.
Set 1 of 5