Advance Customer Deposit in QuickBooks

Hey QuickBooks family,

I am working on the project which cost $1 million and the party gives me $0.2 million in cash as Advance. Now I want to adjust $0.2 million to be adjusted with the expense incurred. And I want to know the Journal entry of the same.

Thanks

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1 Answer(s)

Hi, Thank you for using QuickBooks

I am here to assist you and I will tell you the journal entry to adjust the advance cash payment as the expense incurred. Please see below:

Go ahead and create a liability account called customer deposit then do the journal entry

Debit income – 200K

Credit Customer Deposit – 200K

This will adjust the transactions as you want. Keep me updated,

Thank you, Have a great day

Answered on April 11, 2019.
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