The Town Laundry Purchased $5,500 Worth of Laundry Supplies on June

question 49

Multiple Choice

The Town Laundry purchased $5,500 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 $3,000 on hand.The adjusting entry that should be made by the company on June 30 is

• A)debit Laundry Supplies Expense, $3,000; credit Laundry Supplies, $3,000.
• B)debit Laundry Supplies Expense, $2,500; credit Laundry Supplies, $2,500.
• C)debit Laundry Supplies, $2,500; credit Laundry Supplies Expense, $2,500.
• D)debit Laundry Supplies, $3,000; credit Laundry Supplies Expense, $3,000.

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Definitions:

Approximate Price Level

An estimated cost or price range of goods or services in a particular market or sector, often used for budgeting or planning purposes.

Common Approaches

Standard or widely accepted methods or procedures used to achieve a particular goal or complete a task.

Competition-oriented

An approach or strategy focused on understanding, adapting to, and outperforming competitors in the marketplace.

Price Level

The current average cost of goods and services in an economy or specific market, which can affect purchasing power and economic health.