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Chapter 5 Appendix
The Accounting Cycle: Adjustments
In Summary
Prepare correcting entries
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Correcting entries are made to fix journal entry errors due to wrong accounts or incorrect
amounts.
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Correcting entries are different from adjusting entries and they can be made at any time
during the accounting cycle.
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The related general ledgers accounts should be updated after making correcting entries to
update the ledger account balances.
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