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22 3points Which of the following staternents about adjusting entries is incorrect? Adjusting entries ate required every time a company wants to prepare financial statements. Adjusting entries never imvolve the Cash account. Adjusting entries reduce the balances of revenue, expense, and dividends accounts to zero. Adjusting entries are necessary to ensure that the revenue recognition and expense recognition principles are followed. 3 3. 3 points Entity L purchased $1,800 of supplies on January 1, 2024. A count of the supplies inventory at December 31 indicated that $250 was left. if Entity L does not make the proper adiusting entry at the end of the year, Current assets will be overstated. It won't matter, because the error can be corrected next period. Current assets will be understated Net income will understated. Entity E performed testing services for a cash customer in August 2024 and received payment in August. Entity E will record the uxpenses asuocated with the the testing services in August 2024, even though those expenses will not be paid until September and October of 2024 . This is an example of relevance economic entity assumption the cost constraint the expense recognition principle 13 points On December 31, 2024, Entity G discovered that it has comploted $5,000 of work for an advertising campaign, but never biled the catiomer. What is the correct adjuting journal entry? Dr. Accounts receivable 5,0005,000 Cr. Service revenue Dr. Accounts recelvable 5,000 Cr. Unearned service revenue 5,000 Dr. Cash 5,000 Cr. Service revenue 5,000 No journal entry should be recorded until the customer pays

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