Why the accounting for early termination of revenue lease flows to gain/loss not revenue account?

Summary:

Why the accounting for early termination of revenue lease flows to gain/loss account not revenue account?

Content (please ensure you mask any confidential information):

1, Create a Revenue Lease from Jun 16,2026 to Aug 15,2026

2, Add a payment as monthly base rent (amount $7000)

3, Process payment, accrual and create accounting

4, Terminate the Lease on Aug 1, 2026

5, Process payment, accrual and create accounting

The result shows the payment in Aug is $225.81 ($7000/31*1), this is alright.

However, the accrual accounting entries shows Credit gain/loss not Credit Revenue.

Why the rent in Aug 1st is recognized as gain/loss not rent revenue?

Version (include the version you are using, if applicable):