2. Please prepare a response indicating the reason why adjusting entries are required, the potential impact of this information on financial statement reports and the importance of these adjustments. 3. Two bookkeepers get into a heated discussion about whether closing entries should be made before or after preparing the financial statements. They have come to you to resolve this issue and have agreed to accept your position. Prepare a written response explaining the purpose of closing entries and whether they should be made before or after preparing the financial statements