I have a general question. If there is a deferred revenue schedule and due to an accounting mistake revenue was over recognized. How can this be fixed? Need to remove this over recognition off the balance sheet.
If it's in the current reporting period, simply make an adjusting journal entry to deferred revenue, thereby reducing revenue (debiting) by the over recognized amount, and adding back (crediting) to the respective liability account (i.e. un-earned billings, un-earned subscriptions, etc).
CPA, CIA, CFE, MBA, Big4 Alum, Private Industry (Financial Reporting & Internal Audit), Now Sole Practitioner.