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Unbilled Receivable - Reclassification Entry - Advanced Revenue Recognition
Hello:
I have an advanced revenue recognition question. It may not be an easy one to figure out but at least I wanted to see if anyone has every come across a unique situation like this one.
So, when revenue is recognized, a deferred revenue is debited and revenue is credited.
DR=Deferred Revenue, UR=Unbilled Receivable.
Dr. DR
Cr. Revenue
Then, if there is no billing, NS does a reclass entry, to move the deferred revenue balance to zero. It debits Unbilled Receivable, and credits Deferred Revenue.
Dr. UR
Cr. DR
Then, next month, NS reverses the UR entry above (a)