The Following Adjusting Journal Entry Does Not Include an Explanation

question 183

Multiple Choice

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | r | r | } \hline \text { Supplies Expense } & 730 & \\\hline \text { Supplies } & & 730 \\\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \\\hline\end{array}$$

• A) Adjust supplies inventory to actual.
• B) Record purchase of supplies.
• C) Reduce supplies expense.
• D) Record sale of supplies.

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Definitions:

Perfectly Competitive Eatery

A theoretical model where a restaurant operates in a market with many buyers and sellers, none of which can influence prices.

Breakfast Special

A promotional deal or menu option offered by restaurants specifically for breakfast meals, often at a reduced price.

Costs

The expenses or value sacrificed in the production or procurement of goods and services.

AVC

Average Variable Cost, which is the total variable costs divided by quantity of output produced.