If a business should record a liability for cash received in advance for services performed, the adjusting entry would be to debit unearned revenue and credit service revenue.
The liability created is called the Unearned revenue account and because it is being reduced, it will be debited as all liability accounts are when they are reduced.
Service revenue will then be credited because revenue is credited when it increases. The cash becomes revenue because it has now been recognized for the services performed.
Find out more on unearned revenue at https://brainly.com/question/5010039.
