On January 1, Ogden, Inc. had $1,500 of supplies on hand. Du

On January 1, Ogden, Inc. had $1,500 of supplies on hand. During January, Ogden purchased $5,500 worth of new supplies. At the end of the month, a count revealed $700 worth of supplies remaining on the shelves

The adjusting entry needed will include a debit to Supplies Expense of $6,300. The supplies were initially recorded as an asset.
Indicate whether the statement is true or false

ANSWER

TRUE .Supplies Expense = $1,500 + $5,500 – $700 = $6,300