 So, again, this bottom bit is important in order to give it to the client. So you want to make sure that we apply out the credit. So when I give it to the client, we say, yeah, you still owe us the 1065. However, this bottom bit has no impact on the actual journal entry because that 300 has already been recorded. And therefore, that's why we had a negative accounts receivable. So when I record this 1,365 increase to the receivable and net it out against that negative receivable, that's why we're going to end up with this 1,065 in our balance, right? But I'm not recording this 300. OK, I think hopefully that was clear. It's kind of confusing. But from an internal standpoint, you could see everything is basically tied out and you still have this open bit for the invoice, which you can now basically collect on. What's the impact on the financial statements? Let's look at the balance sheet. And we're going to say that in the A to the R, the R account, we have then, we've got the accounts receivable here, the 1,365 for the full amount. And it's not being decreased by the $300, right? That's the full amount. If I go into it, which I'm overstressing here. So that amount, not that amount. All right, if I close that out and I go back to the income statement and say the income statement, I would like to make a statement about my income. I want more income. That's my income statement. OK, sales of product. Let's go into the sales of product. And then we're going to say that we had then the invoice down below for Anderson of those items. So those are the sales price not impacted by the deposit. And then if I go back, then the difference between those two is just like normal in the sales tax payable. And then we also know that the inventory is going to be going down. So if I go into the inventory, we can see that it is going to be going down, not impacted by the 300 that we've received as a deposit. It's not impacting the journal entry. And then the other side is going to be on the cost of goods sold. So if I go into the cost of goods sold, we can see the decrease or the increase in the cost of goods sold, which is going to decrease the net income, net impact being revenue minus the cost of goods sold. And if I go into the accounts receivable, we'll have the sub ledger for the accounts receivable over here. So sub ledger now for the aid to the R for Mr. Anderson. Let's refresh it. And you can see it's been removed that that amount will we have the open portion of the invoice. Here's the original amount of the invoice. Here's the open portion 1065. And if I scroll to the bottom 20,000 for 2650 is what ties out to the balance sheet 20,000 for 2650. Notice now we don't have a timing difference for Mr. Anderson anymore. If I go back over here, just note that now we have, we don't have a negative amount in here. It's only when we have the negative amount before we complete the transaction that we have a problem in terms of not exactly correct financial reporting having a negative receivable for a particular customer versus a positive liability. We no longer have that once we issue the invoice because now we have a normal accounts receivable that we need to be continuing to collect on. All right. So I think that method actually works quite well. And again, if you have this negative amount, you can kind of fix that periodically, which we will do in an adjusting entry process in a future course or presentation. But a lot of people, some people think that that they instead of focusing in on making things easy on the bookkeeper and then making just doing an adjusting entry at the end of the period, that we really need to get a system where the financial statements are properly recording this as a liability when the transaction happens rather than making a periodic adjustment. So we have some workarounds, which I think are a little bit more difficult on the bookkeeper, but that actually record it as a liability when we make the transaction, which makes it more proper from a financial statement reporting purposes as of the point in time that we get the prepayment. So we'll talk possibly about another method in a future presentation and you can choose whichever one you think is best for you, which might be dependent upon the industry that you are in, right? Because you might choose a different, like if you're in an industry like this one where we have a guitar and we're getting a down payment on the guitar, then I think this negative receivable works pretty well. But if you're in a different system where like you are, all of your revenue is unearned revenue, then because you sell like newspapers, you have the lame legacy newspaper sales or something like that, or you have software, then maybe that it might be a little bit different because then all of your revenue when you first receive it is going to be unearned and you'll have to then calculate how much of it has been earned. So possibly it might be a little bit easier to do a different method in that case possibly. But even then, I think this method still works pretty well, but we'll test out the other method later. So here's our trial balance. So if your numbers tie up to these numbers, great. If you're working along, if not, try changing the date range, remembering this is the balance sheet on top of the income statement. This includes checking account, accounts receivable inventory, investments, payment to deposit, prepayment, accumulated depreciation, contra-asset, furniture and equipment, and then liabilities who has claimed to the assets. The other side of the coin being liabilities and equity, liabilities starting with accounts payable, the visa we owe, the sales tax we owe to the government, the loan payable we owe to the bank, the payroll taxes we owe to the government, and then our portion of the assets in equity, including the investment, owner investment, that's our equity account, owner's equity, the retained earnings account, and then the income statement where we have the credits minus the debits, credits are income, debits are expenses, credits should be winning overall in dollar amount. If we have income and not a loss, if we squished this down to net income and then added it to our equity account of owner's equity, which is the equivalent of retained earnings, then we can see that all of this can be squished down to one equity number, which is the balance sheet number of owner's equity, otherwise known as retained earnings if it were a corporation. We can see that by changing the date one day up, 010125 to 010125, let's run it and we can refresh it, and then you can see that we squished it into one number there, hopefully demonstrating that the income statement is a story backing up the bottom line of the balance sheet, which if you reorganize the accounting equation would be assets minus liabilities equals equity, which would be the book value of the company, and the income statement tells you a story about how you got to that position going back say usually a year in time.