when cash is received for the service at the end of six months a 300 credit in the amount of the full payment is made to accrued income and a 300 debit is made to cash the balance in accrued income returns to zero for that customer 
accrued income also applies to individuals and their paychecks the income that a worker earns usually accrues over a period of time for example many salaried employees are paid by their company every two weeks they do not get paid at the end of each workday at the end of the pay cycle the employee is paid and the accrued amount returns to zero if they leave the company they still have pay that has been earned but has not yet been disbursed 