Entity L purchased $1,800 of supplies on January 1, 2024. A count of the supplies inventory...

Transcribed Image Text:

Entity L purchased $1,800 of supplies on January 1, 2024. A count of the supplies inventory at December 31 indicated that $250 was left. If Entity L. does not make the proper adjusting entry at the end of the year, Net income will understated. It won't matter, because the error can be corrected next period. Current assets will be understated Current assets will be overstated. Entity L purchased $1,800 of supplies on January 1, 2024. A count of the supplies inventory at December 31 indicated that $250 was left. If Entity L. does not make the proper adjusting entry at the end of the year, Net income will understated. It won't matter, because the error can be corrected next period. Current assets will be understated Current assets will be overstated.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is Current assets wi... View the full answer