The balance in the supplies account before adjustment, Accounting Basics

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The balance in the supplies account before adjustment

Question: The balance in the supplies account, before adjustment, represents the amount of supplies available during the period. From this amount ($2,250) is subtracted the amount of supplies on hand ($950) to determine the supplies used ($1,300). The used supplies is recorded as an increase in Supplies Expense, $1,300, and a decrease in Supplies, $1,300.

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Accounting Basics: The balance in the supplies account before adjustment

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