An example of an adjusting entry is
A)the payment of wages that have been accrued.
B)the accruing of interest expense.
C)the return of defective inventory.
D)the payment of rent in advance.
E)collection of an accounts receivable.

Question

Quizplus · Accepted Answer

An adjusting entry is a journal entry made at the end of an accounting period to adjust income and expenses to the period in which they occurred. Accruing interest expense is an example of an adjusting entry because interest expense is recognized in the period in which it is earned, regardless of when it is paid. The other options listed are not examples of adjusting entries.

An Example of an Adjusting Entry Is