Register now or log in to join your professional community.
Accrued revenues are used for transactions in which goods and services have been provided, but cash hasn't yet been received. In many cases, these revenues are included in the accounts receivable listing, and accountants don't need to look for them or to book them separately. A common accrued revenue situation is interest that has been earned but not yet received. The journal entry is to debit (increase) interest receivable, an asset account, and to credit (increase) interest revenue, which is reported in the income statement. When the interest is received, the entry is to debit cash, increasing it, and to credit interest receivable, zeroing it out. The end result is to recognize the revenue in the income
Work in progress (WIP) refers to partially-completed goods that are still in the production process. These items do not include raw materials or finished goods. Work in progress is usually comprised of the full amount of raw materials required for a product, since that is added at the beginning of production, plus the cost of additional processing as each unit progresses through the various manufacturing steps.
Accrued Revenues :
Sale / Revenue has been recognized But not yet billed to the customer.
While Taking About WIP :
WIP refers to work partially completed and partially under production to further use or sale as a finished Good or Completed or Functional.
