1. These are entries made at the end of the accounting period in order to bring the ledger up-to-date. 2. Balance sheet items such as assets, liabilities, and capital. 3. These are income statement items such as revenues, cost and expenses. 4. Expenses already incurred but not yet paid. 5. It prepares the two adjustments for merchandise inventory and enter them in the adjustment columns. 6. No adjustment is prepared for the inventory. 7. It is a trial balance after closing entries have been posted. 8. These are entries made at the beginning of the accounting period to reverse the effects of a previous adjustment by debiting what was credited and crediting what was debited. 9. Accounts in the general ledger that must be closed at the end of the accounting period. 10. An account that is not closed at the end of the month. a. Accrued Expense b. Nominal or Temporary Accounts c. Allowance for Doubtful Accounts d. Indirect Method e. Post-Closing Trial Balance f. Direct Extension Method g. Reversing Entries h. Doubtful Accounts i. Real Accounts j. All temporary or nominal accounts k. Adjusting Entries l. Closing Entries