Pain-Free Dental Group, Inc., purchased dental supplies of $15,500 during the year. At the end of the

Question:

Pain-Free Dental Group, Inc., purchased dental supplies of $15,500 during the year. At the end of the year, a physical count of supplies showed $2,300 of supplies on hand.

Required:

1. Prepare the adjusting entry needed at the end of year.

2. What is the amount of supplies reported on Pain-Free’s balance sheet at the end of the year and supplies expense reported on the income statement?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...