On December 31,Year 3,Supplies,Inc.adjusted its records to recognize $10,000 of accrued salaries.Based on this information alone,the

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The adjusting entry recognizes accrued salary expense and accrued salaries payable. The expense account would be closed at the end of Year 3 and would not be shown on the Year 4 income statement. However, the accrued salaries payable account is a permanent account. The account would not be closed. Instead, the balance would be carried forward to the beginning Year 4 balance sheet.