Accounting entry for applying deposit on invoice

 Hi,

Here is the scenario -

The deposit is created and cash is also received for the deposit.

We need to apply this deposit on the invoice and we need the accounting entry for applying deposit on the invoice.

When deposit is created -

Receivables (Deposit) Dr 10000

To Unearned Revenue 10000

when cash is received for deposit-

Cash Dr 10000

To Receivables (Deposit) 10000

When an invoice is entered in this scenario-

Receivables (Invoice)  10000

To Revenue                     9500

To Tax                                300

To Frieght                            200

Unearned Revenue Dr 10000

Receivables (Invoice) 10000

In this scenario, we need the accouting entry if deposit is applied on the invoice.

Thanks & Regards,

AK