On March 1, Roberts & Sons reported a balance in Supplies of $250. During March, the company purchased supplies (properly recorded) for $950 and consumed supplies of $800.
If no adjusting entry is made for supplies at the end of the month:

Question

Quizplus · Accepted Answer

If no adjusting entry is made, the consumed supplies of $800 will not be recorded as an expense, causing stockholders' equity to be overstated by $800 due to the unrecorded expense.

On March 1, Roberts & Sons Reported a Balance in Supplies