The adjusting entry for a deferred revenue always includes a debit to an asset account and a credit to a revenue account.The debit is to a liability account.

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The adjusting entry for a deferred revenue always includes a debit to a liability account and a credit to a revenue account. The debit reduces the liability balance and the credit recognizes the revenue that was previously deferred.

The Adjusting Entry for a Deferred Revenue Always Includes a Debit