Manufacturing
Tolling Arrangement Revenue (Service Only)
Recording revenue when the factory processes raw materials owned by a customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset (+) | 2,500.00 | - |
| Manufacturing Service Revenue | Revenue (+) | - | 2,500.00 |
💡 Accountant's Note
In a 'Tolling' deal, the factory doesn't buy raw materials. It just sells its labor and machine time. No COGS (Inventory) is recorded, only the operating costs of the factory.
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