Chester Company Started Year 2 with a $2,000 Balance in Its

question 29

Multiple Choice

Chester Company started Year 2 with a $2,000 balance in its Cash account,a $500 balance in its Supplies account,and a $2,500 balance in its Common Stock account.During Year 2,the company experienced the following events:
(1) Paid $1,400 cash to purchase supplies.
(2) Physical count revealed $300 of supplies on hand at the end of Year 2.
Based on this information,which of the following shows how the year-end adjusting entry required to recognize supplies expense would affect Chester's account balances?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Nonconversation

A scenario where communication or dialogue is absent or significantly minimized between parties.

Over-Disclosing

Sharing an excessive amount of personal information in situations where it may not be appropriate or beneficial.

Under-Disclosing

Providing insufficient information or details about oneself, often in a communication or therapeutic context.

Self-Disclosure

Self-disclosure involves revealing personal information about oneself to others, playing a crucial role in developing intimacy and trust in relationships.