Accrual concept is followed by the organization to record the transactions. At the end of an accounting year, the journal entries are prepared to allocate the expenses and revenue to the period in which they are incurred. These entries are known as adjusting entries . To identify & analyze: The adjustment made on July 31, 2017.

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Chapter 4, Problem 4.13.3E

To determine

Introduction: Accrual concept is followed by the organization to record the transactions. At the end of an accounting year, the journal entries are prepared to allocate the expenses and revenue to the period in which they are incurred. These entries are known as adjusting entries.

To identify & analyze: The adjustment made on July 31, 2017.

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