 a movie being so we're going to say it let's save it and close it and check it out so then we'll go to the tab to the right and check it out run it so now we have the adjusting entry for accounts receivable that is in here there's our adjusting entry in the aid to the R increase in the AR which makes it right as of the cutoff to 28 and then we reversed it if I go into March we reversed it in March with the journal entry and that journal entry nullifies itself out in March against the actual invoice which means it's only just recorded in February so now you might get into the same question of why did you why did you enter it as of 3 1 instead of 3 5 if the invoice was entered in 3 5 why don't you just enter it in 3 5 and then you won't have 5 days of it being kind of not exactly right because it's showing like this negative amount for 5 days why don't you just enter it as of 3 5 why because I want all the reversing entries to be easily found and I'm sacrificing the fact that the financial states statements will not be as perfect in the middle of the month in order to make it as easy as possible for us to be correct as of the periodic statements and to allow the accounting department to do whatever format is easiest for them to do so I'm going to go back to the tab to the left and let's go to the profit and loss the P and the L notice that we have it nullified so we once again adjusting entry pulled it into the income over here and we're back down to zero on the income statement and so if I go into the March we've got the two items the reversing entry and then the actual invoice nullifying each other out it's not going to look correct because you got a negative revenue for five days but then after that fifth day when the invoice is in place it nullifies itself and I'm okay to have a negative amount showing up for five days because again we're sacrificing a little bit of inconsistency to have all our reversing entries happen as of one day so we can know where they are going back to the tab with same thing happens with the cost of goods sold here same thing happens back on over with the sales tax if I go down to the sales tax we entered the journal entry for the sales tax to make it right in here there's the adjusting entry and then we've got the reversing entry and the actual invoice nullifying themselves in the following period it's not going back down to zero because this is a permanent account as opposed to the income statement accounts and then if I go up to inventory we've got the inventory is is back you know in alignment so same thing happens here we did an adjustment inventory impacted with the journal entry and then in March we entered this one and we're back good to go so that it's is good so like if I look at my inventory report then let's say I made my inventory report over here as of 02 28 23 and run it so now I'm at 4 7 let's pull up the trustee calculator trustee calculator I'm at 4 7 4 6 which doesn't tie out as of the cutoff date to what's on here it's at here it's at 4 3 4 6 difference by 400 why because I did an adjusting journal entry and remember anytime I do something to inventory I should do it with an invoice or a sales receipt or if I'm buying inventory with an expense check bill form if I'm just entering a journal entry I'm not adding the item and therefore I can throw it out of balance so that's what I did but I did it mindfully saying okay I know I'm gonna throw it out of balance because because I'm trying to make the actual dollar amount correct as of that time frame I know the inventory item that was impacted I could adjust it here's an ELP I think I could adjust it if I need to report the sub ledger but I don't want to mess up QuickBooks sub ledger or anything like that right so I can't really report the item with the inventory but then when I did the reversing entry I'm back in balance the 4 3 4 6 ties out to what's on the sub ledger as of 03 31 2 3 this is back to 4 3 4 6 so we're good we're good to go after after the reversing entry notice the sub ledger for for the customers if I run this this one forces me to use the customer so I couldn't post something to AR without posting to some customer I didn't want to post to Anderson otherwise I would have some weird thing invoice journal entries in here so I put all the weird stuff journal entries down into its own customer down here notice that these two net out to zero but I don't have this nice connection thing I can't really tie them out it's still showing on my detailed report which is kind of ugly right so it's still kind of a messy thing down here because everything else if I if I net it out the invoice to a receive payment QuickBooks would tie those two things out and wouldn't show them in this report as an open invoice these two are back down to zero but it's not netting these two things out that's the problem now if you don't want this ugliness down here then you could create another accounts receivable account but you would have to make it like an other current asset account so there was no sub ledger related to it just so you can put your adjusting entry into it if you want to do that that's okay but this is kind of the work around so that at least you don't have that ugly stuff in the actual customer in other words if I go to the first tab and I go down to the the sales area which is the customer center and go into the customers which by the way if you were in the book the business view that's under the get paid area get paid and pay area such a classy name and it's in it's in the customers all right closing that back out so then you got ZZZ down below so this junk in here these journal entries are not showing up in an actual customer and hopefully are down below and out of the way that's the idea all right so it's going back up I think I think that is that is everything so let's take a look at our reports tab into the right to do so right click and let's duplicate it and let's check it out let's go down to our reports on the left open up some reports close the bookie I'm gonna type in the journal report journal and let's do it as of the cutoff date 0 228 23 0 228 23 run it and then I'm gonna filter by journal entry customize filter filter and that's not filter what filter and then we're gonna go by journal entry run it okay so there's our adjusting entry here's the big one we looked at that's what we did last time we then reversed it as of the first day of the following period so I'm just gonna go up one day to March to March 1st boom there's the reversing entry