Retainage Receivable (Yes, again, but this time with a sample pay app!)

If you haven't read the lesson on retainage receivable, it might help do so before proceeding (https://www.thewipreport.com/post/revenue-accounts-receivable-and-retainage-receivable).

This sample pay app is based on the example in the previous lesson.

Pay APP #1:

AA: Total billings to date of $100,000 should be reflected in the revenue account

BB: 5% of the total billings, or $5,000 should be recorded to retainage receivable

CC: Total billings less $5,000, or $95,000 should be recorded to accounts receivable

Pay APP #2:

AA: Total billings to date of $250,000 should be reflected in the revenue account

BB: 5% of the total billings, or $12,500 should be the balance in retainage receivable

CC: Total billings less previous pay apps and retainage, $142,500, should be recorded to accounts receivable

Hope that visual helps!

Ara