Bridge Company Keeps a Small Inventory of Supplies Used for Cleaning

question 86

Short Answer

Bridge Company keeps a small inventory of supplies used for cleaning and maintenance purposes.On January 1,2011,the inventory of supplies on hand was $2,000.During the year,supplies purchased were debited to the supplies inventory account in the amount of $6,500.On December 31,2011,the inventory count of supplies in the storeroom was $1,750.Give the adjusting entry required at December 31,2011,assuming that no adjusting entries were made during the year.

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Definitions:

Receivables Recognition Irregularities

Irregularities or anomalies in recognizing receivables that may involve premature or improper revenue recognition, affecting the financial statements' accuracy.

Changes in Receivables

This refers to the variations in the amounts owed to a company by its customers over a specific period.

Sales Growth

The increase in sales over a specific period of time, often used as a measure of company performance.

Receivables Growth

A rise in the total money that customers owe a company for products or services provided on credit.