Journal Entry to Record Cash Collected from a Customer

This video shows the journal entry to record cash collected from customers in 3 different situations:
(1) when a cash is made (cash is collected immediately when the sale is made)
(2) when a credit sale is made (cash is collected at a later point in time)
(3) when unearned revenue is recorded (cash is received, but revenue is not recorded)
The journal entries for cash sales and credit sales are similar except that with credit sales "accounts receivable" is debited at the time of the sale instead of debiting "cash" (with credit sales, "cash" is later debited when the cash is collected).
In the third situation, the "cash" account is debited and "unearned revenue" (a liability account) is credited. Remember, a company cannot recognize revenue just because it has received cash from a customer; the company must have earned the revenue (by delivering the good or providing the service to the customer) in order to recognize revenue.
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[@rizwanjanjua9968]

The only channel I have seen on UA-cam that provides complete knowledge. Most of them ignore COGS and Inventory. Happy to see and very appreciative of this channels efforts.

[@user-xl7gb1lc2y]

Dr. Michael is always wonderful.

[@melissagalindo4246]

Thank you for the info.
Wish there was a completed Unearned Revenue Transaction scenario.
I suppose, once inventory/ svcs are delivered, you would debit unearned & credit Revenue? Or is the AR involved?

[@user-lm2wg7dk5b]

Hi, I really like your way of teaching.
Do you have a community or way I can contact you to help me find solutions/way to approach a set of questions from a past paper? I understand some theory but find it difficult to apply.
If anyone else can help also I'd appreciate it