Quirin Corp. purchases office supplies once a month and prepares monthly financial statements. The asset account Office Supplies on hand has a balance of $1,850 on March 1. Purchases of supplies during March amount to
$1,500. Supplies on hand at March 31 amount to $1,020.
REQUIRED: a Identify and analyze the necessary adjustment to be made on Quirin's books on March 31.
b What will be the effect on net income for March if this adjustment is not made?

Question

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The Answer of Quirin Corp. purchases office supplies once a month and prepares monthly financial statements. The asset account Office Supplies on hand has a balance of $1,850 on March 1. Purchases of supplies during March amount to
$1,500. Supplies on hand at March 31 amount to $1,020.
REQUIRED: a Identify and analyze the necessary adjustment to be made on Quirin's books on March 31.
b What will be the effect on net income for March if this adjustment is not made?