Peter’s Pizza started the month with $500 worth of supplies. During the month, Peter’s Pizza purchased an additional $300 worth of supplies. At the end of the month, $175 worth of supplies remained unused. Give the amount that would appear on the income statement for the month for supplies expense and the amount that would appear on the balance sheet at the end of the month as supplies on hand. Is the needed adjustment related to an accrual or a deferral?
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