Our unearned revenue account had a credit balance of $5,000 before adjusting entries were recorded. On December 31, we determined that $2,000 of the $5,000 had been earned during the current year. What account and amount would we credit when we record this adjusting entry in the general journal

Revenue account wiil be credited with $2,000

Explanation:

Unearned revenue is an amount money a company or business received in advance for a service to be rendered or goods to be delivered in the future.

Based on the realization principle, the unearned revenue account will remain credited with the unearned amount until the service is rendered or the goods is delivered when the revenue account will be credited.

Since on December 31, it was determined that $2,000 of the $5,000 had been earned during the current year; the adjusting entry in the general journal will be as follows:

Debit unearned revenue account with $2,000; and

Credit revenue account with $2,000.

Therefore, the revenue account will be credited with $2,000.