The unearned subscriptions account reflected a balance of $32,500 prior to any adjustments. It is determined that $9,800 in subscriptions remain unearned at the end of the period. The adjusting journal entry should include a

The adjusting entry made at the end of the year should be:

Dr Unearned subscriptions 22,700

    Cr Revenue from subscriptions 22,700

Unearned subscriptions is a liability account with a credit balance, and since it will decrease, you must debit it.

Once the revenue from subscriptions is earned, then you must credit it (as all revenues are).

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