The Following Adjusting Journal Entry Does Not Include an Explanation

question 43

Multiple Choice

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

• 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:

Trade Name

A commercial name under which a business operates and is known to its customers.

Legal Costs

Expenses incurred by an entity related to legal services, including attorney fees, court fees, and settlements.

Internally Developed Goodwill

The unrecognized benefit or extra value generated from a business's internal operations and initiatives, which is not formally recorded on the balance sheet.

Purchased Goodwill

The value paid above the fair value of the net assets of a company during an acquisition, attributed to non-tangible assets like reputation or customer loyalty.