Payment Plan Recognition

Ankita Bhavsar

Hi Everyone,

Not sure if this is the best place to ask this question but I'm wondering how others recognize their payment plans on their Financial Statements?

We follow the accrual method for revenue recognition however, but for A/R purposes, on our balance sheet, we would like to show the outstanding balances as per payment plans - is this even something that is possible or are we mish-mashing the accrual & cash method?!

As an example, tuition is $30,000 - we would split that evenly over 11 months and recognize revenue monthly, however based on our payment plan, payments would be due in 3 month increments so we would want to show only $10K the first installment (due Oct) on the balance sheet as due rather than the full $30K, and then $10K second installment, etc.

I hope I'm making sense!

Thanks in advance