USA Proper Recording money received but being contested

Tek

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Sep 29, 2016
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Hello, first time post. I am under a unique situation with my company. We received a fairly significant amount of cash over a three-month period from a contractual agreement, but there was a significant restructure/event with our company, the client continued to pay under the original terms of the agreement (3 months in question). And without getting into too many more details, basically, we received cash, they are contesting it and asking for a refund, and we are taking the stance that the contract was not null or void due to the restructure and rightfully ours. I understand this amount needs to be booked as a liability until a resolution has been made, but I cannot for the life of me come up with a proper GL title to reflect this. I wouldn't consider this true unearned revenue.
 

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