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3 June, 02:31

The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

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  1. 3 June, 03:53
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    Before passing the journal entry, first we have to compute the adjusted balance of the inventory which is shown below:

    = Opening balance of inventory + purchase of inventory - the closing balance of inventory

    = $2,000 + $12,000 - $1,500

    = $12,500

    Now the journal entry would be:

    Supplies expense A/c Dr $12,500

    To Supplies A/c $12,500

    (Being supplies account is adjusted)
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