Accrued Revenues occur when we have delivered a good or service to the customer, but have not yet been paid by the customer.

Concept #1: Adjusting Journal Entries: Accrued Revenues

Practice: On December 23, a customer placed an order with Timely, Inc. On December 28, Timely, Inc. delivered the product to the customer. Timely’s accountant forgot to make the entry and made the entry on January 3. The customer paid its account in full on January 7. When should Timely, Inc. record the revenue?