A company purchased $5,000 of office supplies on January 1, recording them as assets. At December 31, an inventory count showed $1,200 of supplies remaining. The accounting clerk made an adjusting entry debiting Supplies Expense for $1,200 and crediting Supplies for $1,200. What correcting entry is needed?

A company purchased $5,000 of office supplies on January 1, recording them as assets. At December 31, an inventory count showed $1,200 of supplies remaining. The accounting clerk made an adjusting entry debiting Supplies Expense for $1,200 and crediting Supplies for $1,200. What correcting entry is needed?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PA: MacDonald Bookshop had the following transactions that occurred during February of this year:...

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