1. Adjustment Entries
Nila Rahayu
No. 30

3. 2 types of adjustment entries
Deferred Adjustments Accrued Adjustments
• Deferred of Expenses
• Deferred of Income
• Accrued of Expenses
• Accrued of Income

4. Deferred Adjustment
1. Deferred Expense
First recognized as asset :
Asset XXX
Cash XXX
Adjusting entry
Expense XXX
Asset XXX
First regognized as expense :
Expense XXX
Cash XXX
Adjusting entry :
Asset XXX
Expense XXX

5. 2. Defferred Income
First recognized as a liability
Cash XXX
Unearned Revenue XXX
Adjusting entry :
Unearned Revenue XXX
Revenue XXX
First recognized as a revenue
Cash XXX
Revenue XXX
Adjusting entry :
Revenue XXX
Unearned Revenue XXX

6. Accrued Adjustments
1. Accrued Expense
Adjusting entry :
Expense XXX
Liability XXX
Adjusting entry :
Receivable XXX
Income XXX
2. Accrued Income

7. Addition :
1. Depreciation
Depreciation = Depreciable Cost – Residual Value
Estimated Useful Life
Depreciation Expense XXX
Acumulated Depreciation XXX

8. 2. Allowances for Doubtful Debt
Direct Method
Allowances Method
Bad Debt Expense XXX
Acc Receivable XXX
Bad Debt Expense XXX
Allowance for Doubtful Debt XXX