Accrued rent income definition
/What is Accrued Rent Income?
Accrued rent income is the amount of rent that a landlord has earned in a reporting period, but which has not yet been received from the tenant. A landlord using the accrual basis of accounting should record this income, in order to recognize it in the period in which it was earned.
Accounting for Accrued Rent Income
The amount of any accrued rent income should not be recorded if it is probable that the tenant will not pay, and there is no alternative method for receiving payment. The accounting entry for this item is to debit accounts receivable (asset) and credit the accrued rent income account (revenue). Once the tenant pays, the accounting entry is a debit to the cash account and a credit to the accounts receivable account (thereby flushing out the amount in the receivable account).