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Asked Jan 14, 2020
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Define adjusting entries and discuss their purpose.

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Expert Answer

Step 1

Adjusting entries:

Adjusting entries are the journal entries, which are recorded at the end of the accounting period to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting.

Accounting rules for journal/adjusting entries:

  • To record increase balance of account: Debit assets, ...

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