How is estimated revenue that is not yet realized generally recorded?

Estimated revenue that is not yet realized is typically recorded with a credit balance. This reflects the fact that the revenues are anticipated but have not yet been collected in cash or realized through revenue recognition criteria. In governmental accounting, revenues are recognized when they are available and measurable, and the estimated revenues are recorded to prepare budgets and financial statements, anticipating future inflows.

Recording this estimated revenue with a credit balance aligns with typical accounting practices, where revenues increase equity and therefore are credited. This helps ensure that the financial reports can accurately reflect the expected financial position of the governmental entity, even if the actual cash has not yet been received.

A net debit balance is not typically associated with revenue, as debits in revenue accounts would indicate a reduction in anticipated income. The same holds true for a debit balance; it does not represent recognized revenue. A net credit balance might suggest that all anticipated revenues have been recorded, but it is not specific to the 'not yet realized' aspect. Thus, the correct approach to record estimated revenue is indeed through crediting the respective accounts.