Can someone help? At work we received an invoice for $100k for a timeshare project and it was decided the cost can be setup as prepaid and amortized over the life. However the invoice was not processed for payment in time for May's month end close. The manager still wants the cost to be accrued for but what account would make sense to debit on the balance sheet?
Dr. B/S Account?
Cr. Accrued Fees Liability?
The debit on the balance sheet would be an asset holding the timeshare. This would likely be a current asset. The entry would look like this:
Timeshare project 100,000 (debit, asset ...
This solution explains how an invoice accrual should be handled.