Insurance
Renewal Notice — Premium Accrual
Accruing the renewal premium for a policy that has reached its anniversary date but payment is not yet received.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Renewal Premium Receivable | Asset (+) | 1,200.00 | - |
| Written Premium — Renewal Accrual | Revenue (+) | - | 1,200.00 |
💡 Accountant's Note
If the renewal terms are agreed and the risk continues, the premium can be accrued at the renewal date even if cash has not been received. This requires a credit risk assessment on the policyholder.
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