View Policies

Current Attempt in Progress

The policy at Vaughn Manufacturing is to expense all office supplies at the time of purchase. On the last day of the accc there are $$1120$ of unused office supplies on hand and the balance of supplies expense is $$3570.$ What should the acco prepare accrual$-$basis financial statements?

Debit Supplies Expense for $$2450$ and credit Supplies for $$2450.$

Convince management to change its policy to avoid problems in the future.

Debit Supplies and credit Supplies Expense for $$1120.$

Nothing, company policy says to expense supplies when purchased.