When a sale for $1,350 takes place, with a $250 deposit having been received in advance, only the $1,100 on account is recorded into the Revenue journal.

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When a customer makes a deposit in advance, it is recorded as a liability until the sale is completed. When the sale takes place, the deposit is then applied towards the total amount owed, and only the remaining balance is recorded as revenue. In this case, the $250 deposit is deducted from the total sale of $1,350, leaving a balance of $1,100, which is recorded as revenue in the Revenue journal.

When a Sale for $1,350 Takes Place, with a $250