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11 January, 11:56

A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 11 January, 12:10
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    The adjusting entry is shown below:

    Supplies expense A/c Dr $1,000

    To Supplies A/c $1,000

    (Being supplies are adjusted)

    Since in the question, it is given that the supplies were purchased at $4,000 and in hand it was $3,000 so, the remaining balance i. e $1,000 ($4,000 - $3,000) would be adjusted to the supplies expense account.
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