Hello,
In order to collect the cash for a lease incentive to be reimbursed from the landlord we (lessee) had issue an invoice and book it as follows:
DT Accounts Receivable
CT Lease Liability
Since it is month end, cash will be only received next month. Should we change the coding for the invoice?
Thanks!
Lease Incentives - Invoice issued but cash not receipt
Re: Lease Incentives - Invoice issued but cash not receipt
1. Why did you credit (i.e. increase) the lease liability?
2. What do you mean by changing the coding for the invoice? What is the significance of this?
2. What do you mean by changing the coding for the invoice? What is the significance of this?