Question

on december 31, all of the services associated with the beginning deferred revenue have been performed. record the adjusting entry for deferred revenue on december 31.

Answer 1

An adjusting entry is required to recognize revenue when all services associated with the deferred revenue have been performed.

Step-by-step explanation:

Adjusting entry for deferred revenue

On December 31, when all of the services associated with the beginning deferred revenue have been performed, an adjusting entry is required to recognize the revenue.

The adjusting entry for deferred revenue on December 31 would be:

• Debit Deferred Revenue Account
• Credit Revenue Account