Following a physical count, a business has consumable supplies on hand of 350. The accounting records before adjustment show supplies on hand of 500, and an adjusting entry is needed to record the amount of supplies used for the period.
Last modified November 13th, 2019 by Michael Brown
Purchasing office supplies on account will be recorded as a current asset (supplies on hand). As the supplies are purchased on account, the other side of the accounting equation is a liability to the supplier (accounts payable).
Last modified November 19th, 2019 by Michael Brown