### Break Down the Problem
1. Identify the accounts involved in the adjusting entry for deferred revenue.
2. Understand the nature of the deferred revenue and what the adjusting entry signifies.

### Relevant Concepts
1. Deferred revenue represents payments received before services are rendered or products are delivered.
2. The adjusting entry will recognize the revenue as it is earned.

### Analysis and Detail
1. When an adjusting entry is made for deferred revenue, the liability account must be decreased (debited) because the company has now provided the service or product.
2. Accordingly, a corresponding revenue account must be increased (credited) to reflect the earned revenue.

### Verify and Summarize
1. The debit will reduce the liability account since the obligation to deliver service or products has been satisfied.
2. The credit will increase the revenue account, recognizing the income earned during the accounting period.

### Final Answer
The adjusting entry for a deferred revenue includes a debit to a(n) **liability** account and a credit to a(n) **revenue** account.

Question

### Break Down the Problem
1. Identify the accounts involved in the adjusting entry for deferred revenue.
2. Understand the nature of the deferred revenue and what the adjusting entry signifies.

### Relevant Concepts
1. Deferred revenue represents payments received before services are rendered or products are delivered.
2. The adjusting entry will recognize the revenue as it is earned.

### Analysis and Detail
1. When an adjusting entry is made for deferred revenue, the liability account must be decreased (debited) because the company has now provided the service or product.
2. Accordingly, a corresponding revenue account must be increased (credited) to reflect the earned revenue.

### Verify and Summarize
1. The debit will reduce the liability account since the obligation to deliver service or products has been satisfied.
2. The credit will increase the revenue account, recognizing the income earned during the accounting period.

### Final Answer
The adjusting entry for a deferred revenue includes a debit to a(n) **liability** account and a credit to a(n) **revenue** account.

Knowee AI · Accepted Answer

### Break Down the Problem
1. Identify the accounts involved in the adjusting entry for deferred revenue.
2. Understand the nature of the deferred revenue and what the adjusting entry signifies.

### Relevant Concepts
1. Deferred revenue represents payments received before services are rendered or products are delivered.
2. The adjusting entry will recognize the revenue as it is earned.

### Analysis and Detail
1. When an adjusting entry is made for deferred revenue, the liability account must be decreased (debited) because the company has now provided the service or product.
2. Accordingly, a corresponding revenue account must be increased (credited) to reflect the earned revenue.

### Verify and Summarize
1. The debit will reduce the liability account since the obligation to deliver service or products has been satisfied.
2. The credit will increase the revenue account, recognizing the income earned during the accounting period.

### Final Answer
The adjusting entry for a deferred revenue includes a debit to a(n) **liability** account and a credit to a(n) **revenue** account.

The adjusting entry for a deferred revenue includes a debit to a(n) account and a credit to a(n) account. (Enter only one word per blank.)

Question

The adjusting entry for a deferred revenue includes a debit to a(n) account and a credit to a(n) account. (Enter only one word per blank.)

Solution

Break Down the Problem

Relevant Concepts

Analysis and Detail

Verify and Summarize

Final Answer

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