Professional Services
Monthly Retainer Revenue Recognition
Releasing one month of the deferred annual retainer to earned revenue.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Retainer Revenue | Liability (−) | 3,000.00 | - |
| Retainer / Subscription Revenue | Revenue (+) | - | 3,000.00 |
💡 Accountant's Note
Each month, the performance obligation (being available and providing services on-call) is satisfied. The deferred liability decreases and revenue is recognized. Unused retainer hours do not roll over unless the contract explicitly allows it.
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