On January 1, 2020, Evic Ted reported supplies of P1,500,000. During the current year, supplies purchased amounted to P3, 500,000 and the purchases were charged to supplies expense. The December 31, 2020 statement of financial position showed supplies of P900, 000. No reversing entry was made on January 2020. What was the amount needed for the year-end adjusting entry for supplies expense? 2,900,000 decrease 600,000 decrease 2,900,000 increase 600,000 increase
On January 1, 2020, Evic Ted reported supplies of P1,500,000. During the current year, supplies purchased amounted to P3, 500,000 and the purchases were charged to supplies expense. The December 31, 2020 statement of financial position showed supplies of P900, 000. No reversing entry was made on January 2020. What was the amount needed for the year-end adjusting entry for supplies expense? 2,900,000 decrease 600,000 decrease 2,900,000 increase 600,000 increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Evic Ted reported supplies of P1,500,000. During the current year, supplies purchased amounted to P3, 500,000 and the purchases were charged to supplies expense. The December 31, 2020 statement of financial position showed supplies of P900, 000. No reversing entry was made on January 2020. What was the amount needed for the year-end
2,900,000 decrease
600,000 decrease
2,900,000 increase
600,000 increase
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