Bridge Company Keeps a Small Inventory of Supplies Used for Cleaning

question 18

Essay

Bridge Company keeps a small inventory of supplies used for cleaning and maintenance purposes.On January 1,2019,the inventory of supplies on hand was $2,000.During the year,supplies purchased were debited to the supplies account in the amount of $6,500.On December 31,2019,the amount of supplies in the storeroom was $1,750.The books are adjusted only at year-end.
Prepare the adjusting entry required at December 31,2019.

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Definitions:

Herbert Hoover

The 31st President of the United States (1929-1933), whose term was notably marked by the onset of the Great Depression.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, deflation, and a significant fall in economic activity.

Economic Expansion

A phase of the business cycle where the economy grows and increases its output, leading to higher employment and income levels.

Roosevelt Administration

The period of U.S. governance under President Franklin D. Roosevelt, most noted for the New Deal programs implemented to counter the effects of the Great Depression.