What is an example of an adjusting entry for deferred items?

An example of an adjusting entry for deferred items is the recognition of unearned revenue. When a business receives payment in advance for services or goods to be delivered in the future, it initially records this as a liability. As the services are performed or goods delivered, an adjusting entry would debit the unearned revenue account and credit the revenue account, reflecting the income earned during the period. This ensures that revenue is recognized in the correct accounting period.