On August 1 of Year 1, an accountant collected cash in exchange for an agreement to provide consulting services for one year beginning immediately. Based on this information, the year-end adjustment required to recognize earned revenue will affect the .

See explanation

Explanation:

Since we are informed that on

August 1 of Year 1, an accountant collected cash in exchange for an agreement to provide consulting services for one year beginning immediately. From this information, the year-end adjustment required to recognize earned revenue will affect the revenue account as there'll be:

• decrease the balance in the unearned revenue account.

• increase the balance in the revenue account.

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