Six adjusting entries are made for inventory accounts in a manufacturing operation.

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Adjusting entries are necessary for inventory accounts in a manufacturing operation in order to properly account for the cost of goods sold and inventory on hand at the end of the accounting period. These adjustments include recording inventory purchases, adjusting inventory for shrinkage or obsolescence, and recognizing inventory as a cost of goods sold.

Six Adjusting Entries Are Made for Inventory Accounts in a Manufacturing