Answer:
The answer to the query is that Deferred Revenue is not credited but debited.
Explanation:
Deferred revenue is a payment from a customer for future goods or services not supplied or consumed. The seller records this payment as a liability, because it has not yet been earned.
Moreover, Deferred revenues are not "real revenues." They don't affect net income or loss at all. Rather, they report on the Balance Sheet as liabilities. The journal entry to recognize a deferred revenue is to debit or increase cash and credit or increase a deposit or another liability account.
You need to make a deferred revenue journal entry. When you receive the money, you will debit it to your cash account because the amount of cash to your business has increased. consequently, you will credit your deferred revenue account because the amount of deferred revenue is increasing
