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Deferred rent

Here is how to handle deferred rent in Cradle when transitioning to ASC 842

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Written by Support
Updated over 2 years ago

If, when transition to ASC 842 you have a deferred rent balance on your balance sheet, you will enter the balance in the Initial Recognition tab under ROU Asset inputs:

That will then create the following journal entry:
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The "Accrued rent suspense account" debit will be netted against your deferred rent amount on your balance sheet making the balance $0.

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