Adjusting Deferred and Accrued Expense Items Financial Accounting
You would record it as a debit to cash of $10,000 and a deferred revenue credit of $10,000. You would record this as a debit of prepaid expenses of $10,000 and crediting cash by $10,000. An accrual system recognizes revenue in the income statement before it’s received. A deferral system aims to decrease the debit…