The Vintage Laundry Company purchased $8,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,500 on hand. The adjustment that should be made by the company on June 30 is:Answers:increase Supplies Expense, $1,500; decrease Supplies, $1,500. increase Supplies, $7,000; decrease Supplies Expense, $7,000. increase Supplies, $1,500; decrease Supplies Expense, $1,500. increase Supplies Expense, $7,000; decrease Supplies, $7,000

Name: The Vintage Laundry Company purchased $8,500 worth of laundry supplies
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Description: The Vintage Laundry Company purchased $8,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,500 on hand. The adjustment that should be made by the company

Supplies: Supplies is an asset; hence it is shown in the balance sheet.

Answered: The Vintage Laundry Company purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Vintage Laundry Company purchased $8,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,500 on hand. The adjustment that should be made by the company on June 30 is:

Answers:	increase Supplies Expense, $1,500; decrease Supplies, $1,500.
	increase Supplies, $7,000; decrease Supplies Expense, $7,000.
	increase Supplies, $1,500; decrease Supplies Expense, $1,500.
	increase Supplies Expense, $7,000; decrease Supplies, $7,000

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