During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in...

 

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During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. The adjusting entry for store supplies will a. increase net income by $22,200. b. increase expenses by $22,200. c. decrease supplies by $6,600. d. debit Accounts Payable for $6,600. During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. The adjusting entry for store supplies will a. increase net income by $22,200. b. increase expenses by $22,200. c. decrease supplies by $6,600. d. debit Accounts Payable for $6,600.

Answer rating: 100% (QA)

Solution Answer is b increase expenses by 22200 Working Notes Purchase of supplie... View the full answer