The company receives a $500,000 payment from a client. Half of this payment is for services that the company had previously performed for the client, while the other half of the payment is a retainer fee for services to be performed in the future.   Provide the journal entry that would be necessary to record the transaction.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 2MC: A contract between one or more parties creates: a. the date that cash is paid by the customer b....
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The company receives a $500,000 payment from a client. Half of this payment is for services that the company had previously performed for the client, while the other half of the payment is a retainer fee for services to be performed in the future.  

Provide the journal entry that would be necessary to record the transaction. 

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