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ACCOUNTING (Advance Sales)

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I am unsure of how to adjust Advance Sales. For Year End, DEC 31, 2011.

If my Unadjusted Balance for advance sales is $324,000 and I am told the following:

75% of the balance in Advance Sales is for garments to be made and delivered in 2012; the remaining 25% is from sales earned in 2011.

How I would I adjust?

Would I go ...

324,000 *0.25 = 81,000 and say
DR. Unearned advance sales 81000
CR. Earned advance sales 81000

Is it part of my sales account? My sales account has a balance of 1,849,000

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