Week 4: Adjusting Journal Entries

Question 1

What happens if you do not adjust journal entries?

Answer 1

You will be guilty of negligence

Question 2

Purpose of Adjusting entries

Answer 2

Entries that are made at the end of the year because, for these items, it does not make sense to record day-to-day, such as depreciation

Question 3

Trial balance

Answer 3

List of all the account entries

Called a trial balance because all of the accounts that have debit balances are in the left column, and all credit balances are in the right column. They have to equal eachother

Question 4

Adjust for taxes and depreciation

Answer 4

.

Question 5

What do you do if there is a sales return?

Answer 5

You make an allowance that sales come back