The adjusting entry to record rental income that is earned would involve a debit to Rental Income and a credit to Unearned Rent Revenue.

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This is because when rent is collected in advance, it is recorded as unearned rent revenue. As the rental period progresses, the amount that is earned can be recognized as rental income, which is debited, and the unearned rent revenue account is credited to reduce the liability. This adjusting entry ensures that the correct amount of revenue is recognized in the correct period.

The Adjusting Entry to Record Rental Income That Is Earned