What is adjusting entry?

What account type is debited in the adjusting entry when unearned income was initially recorded as revenue?

  • what account type is debited in the adjusting entry when unearned income was initially recorded as revenue?

  • Answer:

    Debit Revenue (revenue account) Credit Unearned Revenue (liability) Reverses the credit to Revenue that was incorrectly recorded, and creates the liability for the unearned revenue (assuming payment was received from customer).

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