Common Double Entry Journals In The Sales Cycle

In a chronological order.

1. Receiving A Payment In Advance For A Sale

Dr Cash (BS)
Cr Deferred Income (BS)

2. Making A Sale Without Invoicing

Dr Accrued Income (BS)
Cr Revenues (P&L)

3. Making A Sale With Invoicing

Dr Accounts Receivable (BS)
Cr Revenues (P&L)

4. Delivering The Service Related To A Prepaid Sale

Dr Deferred Income (BS)
Cr Sales (P&L)

This follows from 1.

5. Invoicing A Sale That Had Previously Been Accrued

Dr Accounts Receivable (BS)
Cr Accrued Income (BS)
This follows from 2.

6. Receiving Cash For A Sales Invoice

Dr Cash (BS)
Cr Accounts Receivable (P&L)

This follows from 3 or 5.