Accounting for Retention Receivable & Payable: A Contractor’s Guide
Levelset
JUNE 6, 2022
Both retention accounts are shown as current assets and current liabilities, respectively. Plus, not recording retention payable leads to the understating of a company’s liabilities. ABC Contractor is billing a project owner for $100,000 with 10% retention. Paul’s Masonry invoices ABC $50,000 with 10% retention.
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