Accordingly, a company's trial balance must be in order prior to being used to prepare a tax return. Thus ... throughout the year. Make adjusting entries to resolve incorrect classifications.

Debits and credits are the key tools for adjusting company accounts ... allowances for an accounting period. The journal entries to record a return or allowance are to debit sales returns and ...

Adjusting entries are made at the end of the accounting ... so they can include the $1,200 you paid in December on your tax return. Remember, we are making these adjustments for management ...