Question

Which of the following is an example of an adjusting journal entry?

A Recording a sale on credit Correct Answer Incorrect Answer
B Accruing interest expense Correct Answer Incorrect Answer
C Purchasing office supplies Correct Answer Incorrect Answer
D Paying a utility bill Correct Answer Incorrect Answer

Solution

An adjusting journal entry is used to record a transaction that occurred during the current accounting period but was not previously recorded, such as accruing interest expense.

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