yo yo yo welcome back everybody this is
CP a strength this is accounting for
beginners I am the strongest licensed
CPA in the state of Florida
maybe the southeast we don't know let's
just get started because everyone likes
that especially for this accounting for
beginners videos this is number 97 1
take Timmy right here 1 tizzle we do
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comment and subscribe comment on your
questions because lately I've been
getting so many good questions I'm
making all my videos out of questions
now this question was the pertains to
this video was on account an accounts
receivable aru notice how I don't have a
are written down here because I think as
a beginner you don't want to abbreviate
so I write out everything so you know
what AR is its accounts receivable the
person commenting said hey why there's
two journal entries for for this and the
person was saying hey why is it revenue
accounted for twice or in the second
turn on tree why is it revenue in there
like what's up with that and I just
wanted to say we'll go through this
example and I'll kind of show you why
revenue isn't in there twice because you
didn't the the short answer is he didn't
do work twice you did you do performed
one job so if you booked revenue twice
because revenue was already in Revenue
Service art is already in the first
journal entry so if you booked it twice
you'd have to to rather than to service
revenues but you didn't work twice so
that doesn't really work certainly this
is number 97 and
you perform services worth $500 on one
118 and you get paid later at 7 118 I
don't think really in your accounting
textbooks and everything they're gonna
say hey you got paint later they usually
say I think on account but I just want
to let you know that so you realize you
know you get paid later you didn't get
paid now so this one's not this this
one's not really get not really gonna
get into the journal entry and why it's
you know debits and credits and up or
down I don't have my DC idler here
because I just want to get through why
you wouldn't put service revenue twice
and kind of answer this question and
we'll just see how it goes anyways I'm
making all kinds of counting videos so
we'll just see 20 ways you perform
services worth $500 one one eighteen and
you get paid later seven one eighteen
now I got now I guess you wouldn't
really know you know if someone says hey
I'll pay you later you're not gonna know
when you get paid but let's just say
we're doing this a lot out and you got
paid out seven one eighteen so you
really wouldn't know you're getting pay
they say he'll pay you later okay you're
like yeah sure bro anyways so the
journal entry for that on one one
eighteen because that's when you perform
services is worth five hundred dollars
and you didn't get paid and they're
gonna pay you later so what would be you
would credit service revenue for five
hundred dollars now your debit would be
usually think about it if I would like
to go with cash if they paid you cash
you would debit cash for primary dollars
and that's an asset they didn't in place
of the cash they gave you an IOU
accounts receivable so that would be
your debit for five hundred dollars and
let now we're going to go down here to
the general ledger that's like a
detailed detailing of each transaction
in each account so you would have five
hundred dollars in the accounts
receivable on one 118 and totaling five
hundred dollars you would also have
service revenue of five hundred dollars
in the general ledger now let's go to
seven 118 they say hey I got your money
for you you're like thank you very much
can I have my money now okay so what
happened on 718 well you got paid boy
and and why did you get paid from the
person that owed you money so the person
who owed you money gave you the money
now if you watch I always like to do
cash first on journal entries and
everything really cuz that's that's a
big part of the accounting so you know
if this is new to you watch some older
videos please because I really go in
depth this is my 97th accounting for
beginners video I really go in depth
about debits and credits and DCA leur
that's kind of probably why people watch
me
besides my personality which is coming
back a little bit the flow is coming
back a little bit I didn't really post
regularly for about seven months and a
lot of my pizzazz a lot of my momentum
drop I would suggest if you're doing
YouTube don't stop doing YouTube I just
had to anyways anyways so you get paid
you get paid from someone who owed you
money so that was an accounts receivable
account but anyways you get paid so the
debit for that is going to be
five hundred dollars and then you are
going to your the accounts receivable
account is going to be credited for five
hundred dollars because it is lowering
its decreasing now think about it or
some someone og5 our accounts receivable
accounts five hundred dollars they owed
it to you and then they paid you that
money then they don't owe it to you
anymore so that account is decreasing so
now the general ledger is not really on
a double see the the journal entries is
a double a double entry accounting
system debits equal credits the general
ledger is just an accounting and it's
not and it's not a double entry so you
would have so let's see what we have on
our general ledger on seven 118 well you
have cash for five hundred and you would
have a negative you have a negative five
hundred in accounts receivable because
they paid you back and it counts
receivables on the credit so you know
accounts receivable is an asset if it
was in the pot if it was going going up
in the letter it would be a debit but
it's not it's going down so it's a
credit so anyways your accounts
receivable account would be zero after
all said and done after all said and
done here the accounts receivable
account would be zero your service
revenue after all said none would be
five hundred dollars your cash would be
five hundred dollars and that's what we
got for today I hope
helped out I do try to make these in two
or three minutes or four or five that
it's my hope but I really just like to
explain stuff and I'm trying to leave
all the other stuff out and just make
other videos for other stuff anyways I
can't tell you how much you know helping
people growing my youtube channel really
means to me it it really makes my day
and you know what I will be back
tomorrow or the next day I'll be back
very soon with another accounting for
beginners and I love helping you guys
and just stick with it and for anyways
deuces