F1 M8 Flashcards
1
Q
A
AJEs will never involve cash, AJEs involve one IS and one BS account, and AJEs must
be made by the end of the financial year
2
Q
A
Sometimes, given a situation, an AJE might not even be required to record (ex: Inv
shipped FOB shipping on Dec 30 was not included in inv for YE when it should’ve been.
In this case, I would just need to debit inv and credit AP if i haven’t paid for it yet)
3
Q
A
REMEMBER TO ALWAYS reduce the PRINCIPAL by the PAYMENT MADE
