The supplies inventory account of Forever Flowers shows a balance of $1800 on 30 June 2018, the end of the financial year. Supplies of $1550 were used during the month of June 2018. Which of the following is correct after recording the adjustment on 30 June 2018?
A) Supplies expense in the income statement is $1550 and Supplies inventory in the balance sheet is $250.
B) Supplies expense in the income statement is $1800 and Supplies inventory in the balance sheet is $0.
C) Supplies expense in the income statement is $0 and Supplies inventory in the balance sheet is $1800.
D) Supplies expense in the income statement is $250 and Supplies inventory in the balance sheet is $1550.
Correct Answer:
Verified
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