Construction

Milestone Payment Received from Client

Collecting a payment linked to achieving a specific project milestone (e.g., structural completion).

Account NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)500,000.00-
Accounts Receivable (Progress Billing)Asset (-)-500,000.00

💡 Accountant's Note

Milestone payments clear the progress billing receivable. The cash receipt does not create revenue — revenue was recognized earlier when the work was performed.

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