Chapter 4 adjustments, financial statements, and the. Any contra account is directly related to another account but has a balance on the opposite side of the t-account. When cash is received prior to earning a revenue by delivering goods/performing a service, the company records a journal entry. Unearned revenue is considered a deferred revenue account. Accrued revenues: when revenues are earned but not yet recorded at the end of the accounting period because cash changes hands after the service is performed/goods are delivered. Deferred expenses: when cash is paid prior to incurring an expense. Accrued expenses: expenses that are incurred in the current period but not paid for until the next. Identify whether the adjustment is to an existing deferred revenue or expense or an unrecorded accrued revenue or expense. Ask yourself was cash already received or paid prior to the end of the period, or will cash be received or paid in the future? .