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What are the accounting entries to offset the accounts received in advance?
In daily trading activities, companies often encounter various payment methods, including mortgage and advance payment. When the company receives the advance payment, it needs to be written off. How to make accounting entries?

Reversing accounting entries of advance receipts

1. Upon receipt of advance payment:

Debit: cash on hand/bank deposit.

Goods: accounts received in advance -XX

2. When the accounts received in advance are written off, the accounting entries of the actual amount written off are:

Debit: accounts received in advance -XX

Loan: income from main business

Taxes payable-VAT payable (output tax)

3. Accounting entries for cost carry-over:

Debit: main business cost

Borrow: inventory goods

The main business cost refers to the cost of selling goods, providing services and other business activities. Enterprises generally transfer the cost of selling goods and providing services to the main business cost when confirming the main business income such as selling goods and providing services or at the end of the month.

Accounting treatment of prepayment offset

At present, the invoice is 22,000 yuan, and 20,000 yuan is paid in advance. What should I do with the remaining 2000 yuan? The accounting entries are as follows:

1, when 20,000 yuan is paid in advance:

Borrow: advance payment-20,000 yuan from Company A.

Loan: 20,000 yuan in bank deposit.

2. Accounting entries of goods entering the warehouse when the invoice is returned

Borrow: 22,000 yuan of raw materials

Loan: advance payment-Company A 22000.

3. Pay 22,000-20,000 yuan in advance, and still owe the other party 2,000 yuan to make up the balance.

Debit: Accounts received in advance in 2000-Company A.

Loan: Bank deposit 2000.

Prepayment refers to the money paid by an enterprise to the supplier in advance in monetary funds or monetary equivalents according to the purchase contract. Generally, it includes payment in advance, purchase deposit in advance, project payment in advance, reserve fund in advance, etc. , but also an integral part of the company's creditor's rights.

Prepayment refers to the money paid by an enterprise to the supplier in advance in monetary funds or monetary equivalents according to the purchase contract. Prepaid account is a kind of current assets, which generally includes prepayment of goods and prepayment of purchase deposit.