SaaS
Prorated Refund for Churned Customer
Issuing a partial refund to a customer who cancelled their annual plan halfway through.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Revenue | Liability (-) | 600.00 | - |
| Cash in Bank | Asset (-) | - | 600.00 |
💡 Accountant's Note
Since the revenue was 'Deferred' (unearned), the refund simply reduces that liability. No 'Revenue' account is hit because the money was never recognized as earned.
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