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| Received Commission Journal Entry |
When the business receives a commission, Then the company shall be considered the revenue.
Journal Entry for Receiving Commission
Cash or Bank Account Debit
Commission Revenue Account Credit
- The "Cash" or "Bank Account" is debited because of increased cash or bank balance.
- The "Commission Revenue" account is credited because of recognizes the revenue from the commission.
This above entry indicates that the business has earned the income i.e commission income. If the payment is not received immediately but it is expected later, you would debit the "Accounts Receivable" account instead of "Cash" or "Bank Account."
