Construction
Subcontractor Advance — Recovery Deduction
Deducting the subcontractor advance from a progress payment certificate as work is completed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Payable (Subcontractor) | Liability (-) | 10,000.00 | - |
| Advances to Subcontractors | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
The advance is recovered proportionally from each progress payment. This reduces the subcontractor advance asset without recording an expense — it is a balance sheet offset.
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