What Is the Correct Adjusting Entry at June 30,the End

question 16

Short Answer

What is the correct adjusting entry at June 30,the end of the financial year,based on a Supplies account balance,before adjustment,of $5200 and supplies inventory,on June 30,of $1200?

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Return On Investment

A metric used to evaluate the efficiency of an investment, calculated as the profit from an investment relative to its cost.

Invested Assets

Resources put into a business by its owners or shareholders with the expectation of generating future income or profit.

Net Income

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue.