In the case of Unearned revenue,the adjusting entry at the end of the period includes a credit to Service revenue.

Question

Quizplus · Accepted Answer

This is because unearned revenue represents money that has been received in advance for services that have not yet been provided. Therefore, at the end of the period, a portion of the unearned revenue should be recognized as revenue, and this is recorded as a credit to Service revenue.

In the Case of Unearned Revenue,the Adjusting Entry at the End