The adjusting entry to record revenue earned during the current period when cash was received in the last accounting period includes a credit to Unearned Revenue.

Question

Quizplus · Accepted Answer

The adjusting entry to record revenue earned during the current period when cash was received in the last accounting period would include a debit to Unearned Revenue, not a credit. This is because the initial receipt of cash would have been recorded as a credit to Unearned Revenue, and the adjusting entry would reverse that credit and record the revenue as a debit to a revenue account.

The Adjusting Entry to Record Revenue Earned During the Current