Problem: Adjustment for Supplies
Answer each of the following independent questions concerning supplies and the adjustment for supplies for each entity's first year of operations.
1) The balance in the supplies account, before adjustment at the end of the year, is $5,060. What is the amount of the adjustment if the amount of supplies on hand at the end of the year is $2,380?
2) The year-end supplies account balance is $2,610 while the supplies expense account year-end balance is $7,310. What was the amount of supplies purchased during the year?