use prepayment in a sentence.
Kickstarter isn't prepayment, it's patronage, the providers are under no obligation to deliver the product.
It's worded awkwardly, but I believe that a $50 donation is a prepayment for one year of service, so you're not being asked to pay twice.
Step 1 - receive cash from customersDebit Cash Account [Asset] Credit Prepayment / Deferred Revenue Account [Asset]Cool - everything balances.
Debit Prepayment / Deferred Revenue Account [Asset] Credit Revenue Account [P&L]
They don't want that so bad that they will prepay me because they believe I'm not going to do that to them, they really want me to do their project, and so prepayment is a non-issue.