how do you record deferred revenue in an account 
the accountant records the amount as a debit entry to the cash and cash equivalent account and as a credit entry to the deferred revenue account when payment is received in advance for a service or product a debit entry for the amount paid is entered into the deferred revenue account and a credit revenue is entered into sales revenue when the service or product is delivered can you have deferred revenue in accrual accounting no accrual accounting records revenue for products or services that have been delivered before payment has been received this is the opposite of deferred revenue in a way that records revenue for services or products yet to be delivered accrual accounting records revenue for payments that have not yet been received for products or services already delivered 1the bottom linedeferred revenue is recorded as such because it s money that hasn t yet been earned the product or service in question has not yet been delivered it s common for businesses to receive payments upfront but such payments are recognized as liabilities on balance sheets because the recipients still owe goods services or possibly a refund if the goods or services never are delivered 