Final answer:
The adjusting entry for recognizing revenue from the performance of services or delivery of goods results in a decrease to the Deferred Revenue account, moving the amount to the revenue account as it is earned.
Step-by-step explanation:
The adjusting entry to record the amounts of revenue for which the seller has performed its obligation during the accounting period results in a decrease to the Deferred Revenue account. When a company receives payment for products or services that it has yet to deliver or perform, the amount is recorded as deferred revenue, which is a liability on the balance sheet.
As the company delivers the goods or performs the services, it recognizes this revenue by making an adjusting entry that debits the deferred revenue account and credits the revenue account, thereby recognizing the earnings.