References 12 ' Review ' View Help Open in Desktop App . ... Ev Tell me what you want to do Editing v ... Av O Fir 1) What are adjusting entries? 2) Which account is never present in an adjusting entry? 3) What is the effect of not posting the following entry on the Financial Statements, i.e. explain the impact on a) Income Statement, b) Statement of RE, c)Balance Sheet Supplies Expense $500 Supplies $500 4. Some of the largest business frauds ever perpetrated have involved the misstatement of inventory. Two classics were at Leslie Fay and McKesson Corporation. Instructions There is considerable information regarding inventory frauds available on the Internet. Search for information about one of the two cases mentioned above, or inventory fraud at any other company, and prepare a short explanation of the nature of the inventory fraud