Six adjusting entries are made at the end of the fiscal year for inventory accounts in a manufacturing operation.

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Adjusting entries are necessary at the end of the fiscal year to account for any inventory that may have been purchased, sold, or scrapped. These entries help to ensure that the inventory accounts accurately reflect the value of the company's inventory on hand at the end of the year. In a manufacturing operation, there may be multiple inventory accounts that require adjusting entries, such as raw materials, work-in-progress, and finished goods.

Six Adjusting Entries Are Made at the End of the Fiscal