Double Entry Accounts for payment of tuition fees

A student has total tuition fee of 8,000. The student paid 3,000 as a down payment and the journal entry is:

Cash 3,000
AR   5,000
     Tuition Fee  8,000

But what if the student will pay 3,500 for the next payment, what would be the journal entry? Is this correct?

Cash 3,500
AR   4,500
     Tuition Fee  8,000

bobbybouwmann

6 years ago

Level 88

I would probably keep a table that says all payments for the tuition fee. Then you can count all the values and see how much there still needs to be paid for that specific tuition fee.

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