Final answer:
Adjusting entries are recorded in the general journal in accounting to ensure accurate financial statements.
Step-by-step explanation:
Adjusting entries should be recorded in
In accounting, adjusting entries are recorded in the general journal. The general journal is a book where all transactions are initially recorded before being transferred to the appropriate accounts. Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect the correct amounts and are in accordance with the matching principle and accrual accounting.
For example, if a company has incurred expenses but hasn't yet paid them, an adjusting entry is made to recognize the expense and record the related liability. This ensures that the expense is properly matched with the revenue it helps generate in the same accounting period.