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Adjusting Entries


Accrual Action first, cash payment later. Goes into receivable accounts, not revenue until paid.
Deferral Cash first, action later. Unearned revenues, prepaid expenses. Does not go into revenue until it is earned.
Other Adjustment Examples Inventory CGS, Operating Expense for Tools, PPE Depreciation
Uncollectible Accounts Method ($ Allowances for Bad Debt) ($Bad Debt Expense) May come as a percentage or number.
Contra Assets (2 Examples) Accumulated Depreciation, Allowance for Doubtful Accounts
Created by: 563877211