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Answer:
Supplies expense $2200 Dr
Supplies $2200 Cr
Explanation:
The adjusting entries are made at the end of the accounting period under the accrual basis of accounting. The accrual principle states that the revenue and expenses for a period should be matched and recorded in that particular period.
Supplies expense is calculated by determining the amount of supplies at start of the year and adding the purchases of supplies. At the end of the year, the closing inventory of supplies is determined and the difference between supplies available and the closing inventory is charged as supplies expense.
Supplies expense = Opening Inventory + Purchases - Closing inventory
Supplies expense = 3700 - 1500 = $2200
if no adjusting entry is made at year-end, the financial statements will be affected:
Net - income: will be overstated
Assets: will be overstated
<h3>What are Financial statements?</h3>
- The financial actions and position of a company, individual, or other entity are formally recorded in financial statements (also known as financial reports).
- The presentation of pertinent financial data is organized and presented in an understandable style.
- The purpose of financial statements is to give information about an organization's financial situation, performance, and changes in financial position that may be used by a variety of users to make financial decisions.
- Financial statements must be clear, pertinent, dependable, and similar.
- The financial condition of an organization is directly tied to the reported assets, liabilities, equity, income, and expenses.
To learn more about financial statements, refer to:
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I think it would either be potential markets or target markets but i would probably choose target markets
The store owners must make a decision to set a low milk price thinking about the people but if they think of their profit then they should better decide to set a high milk price.
