Recorded the purchase as an asset


The Village Laundry Company purchased $4,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,000 on hand. The adjusting entry that should be made by the company on June 30 is

a. Debit Laundry Supplies Expense, $3,500; Credit Laundry Supplies, $3,500.

b. Debit Laundry Supplies Expense, $1,000; Credit Laundry Supplies, $1,000.

c. Debit Laundry Supplies Expense, $3,500; Credit Laundry Supplies, $1,000.

d. Debit Laundry Supplies, $3,500; Credit Laundry Supplies Expense, $3,500.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Recorded the purchase as an asset
Reference No:- TGS080556

Expected delivery within 24 Hours