An Adjusting Journal Entry (AJE) is an entry in a company’s general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period. AJE’s serve the following functions in Total Office Manager:
- They adjust balances. This means that they change the amounts that go to financial statements.
- Reclassifications. These AJE’s move balances from one account to another.