You are an accountant in a medium-sized manufacturing company. You have been asked to mentor an accounting clerk who is new to your accounting department.
- Explain why adjusting entries are necessary.
- Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each.
- Describe how these entries would be recorded in a computerized accounting system.
- Describe 1 ethical issue that could result from the preparation of these manufacturing entries.