In an operating lease, if a non-refundable down payment is made in advance, the lessor should initially debit Cash and credit Unearned Rent (liability).

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In an operating lease, a non-refundable down payment made in advance should be initially recorded by the lessor as a debit to Cash and a credit to Rental Income (or a similarly named account), recognizing the income immediately if it is earned upon receipt, rather than as a liability (Unearned Rent).

In an Operating Lease, If a Non-Refundable Down Payment Is