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The Policy at Adler Corporation Is to Expense All Office

Question 157

Multiple Choice

The policy at Adler Corporation is to expense all office supplies at the time of purchase.On the last day of the accounting period there are $1100 of unused office supplies on hand and the balance of supplies expense is $3500.What should the accountant do?


A) Increase Supplies and decrease Supplies Expense for $1100.
B) Nothing company policy says to expense supplies when purchased.
C) Convince management to change its policy to avoid problems in the future.
D) Increase Supplies Expense for $2400 and decrease Supplies for $2400.

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