Maya Co.had $12,000 of supplies at the end of October.During November,the company bought $4,000 of supplies.At the end of November,the company had $2,000 of supplies remaining.Which of the following statements is not correct?

Question

Quizplus · Accepted Answer

Supplies used = Beginning supplies + Supplies purchased − Supplies on hand
= $12,000 + $4,000 − $2,000 = $14,000
The adjustment to record the use of supplies includes a debit to Supplies Expense and a credit to Supplies $14,000,the amount of supplies used during the period.Supplies of $2,000 will be reported on the balance sheet and Supplies Expense of $14,000 will be reported on the income statement.

Maya CoHad $12,000 of Supplies at the End of October