The Supplies Account Shows a Beginning Balance of $3,000

question 148

Multiple Choice

The supplies account shows a beginning balance of $3,000. Assume the supplies account shows an entry as a debit for $5,500 representing supplies purchased during the period and the supplies inventory at year end is $1,700. The adjusting entry involves a:

• A)debit to supplies expense for $6,800.
• B)debit to supplies for $6,800.
• C)debit to supplies expense for $1,700.
• D)debit to supplies for $1,700.

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Definitions:

Voidable

A term used in contract law to describe an agreement that remains valid until one party chooses to cancel or void it due to certain defects or circumstances at the time of execution.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Disaffirming

The act of rejecting or nullifying an agreement or contract, particularly in the context of legal minors or parties without the capacity to enter into a contract.

Minor

A person who is under the age of legal adulthood.