ADJUSTING JOURNAL ENTRY
An item in financial reporting that takes place at the conclusion of a reporting period to account any unrecognized expenses or income for the period. If a transaction started in an accounting period and ends in an another then an adjusting journal entry is needed to properly account the transaction.
Adjusting journal entries can also pertain to financial reporting that alters a mistake done in previous accounting period.
Also referred as "balance day adjustment."
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