If A Company Fails To Adjust An Unearned Revenue
What happe ns if a company or b usi ness forgets to adjust Unearned Revenue or Revenue Received In Advance ? T he a nswer to t his questio n is t hat whe n t he compa ny records unearned revenue b ased o n Accrual Basis of Accounting , t he n it deb it cash accou nt and credit unearned revenue. At t he time of adjustme nts, t he adjusti ng entry is not recorded and h ence t he value of u nearned revenue is not adjusted. T he adjusti ng entry is s how n b elow: Cash a/c XXX U nearned Revenue a/c XXX ...