3.9

Adjustment for Supplies The downtown location of Chicago Clothlers purchases large quantities of supplies, including plastic garment bags and paper bogs and boxes. At December 31 , the following information is avallable concerning these supplies: All purchases of supplies during the year are debited to the supplies inventory. Required: 1. What is the expense reported on the income statement associated with the use of supplies? 2. What is the proper adjusting entry at December 31 ? If an amount box does not require an entry, leave it biank. 3. By how much would assets and income be overstated or understated if the adjusting entry were not recorded? Assets Net income and stockholders' equity by by