A company just starting a business purchased three inventory items at the following prices: March 2, $255; March 7, $265; and March 15, $285. If the company sold one unit for $335 on March 10 and one unit for $355 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory?

$268.33

$355.00

$285.00

$272.50

The Marigold Ltd. purchased $5800 worth of laundry supplies on June 2 and recorded the purchase as an asset in the Supplies account. On June 30, a count of the laundry supplies indicated only $3300 on hand. The adjusting entry that should be made by the company on June 30 is

debit Supplies Expense, $2500; credit Supplies, $2500.

debit Supplies, $3300; credit Supplies Expense, $3300.

debit Supplies, $2500; credit Supplies Expense, $2500.

debit Supplies Expense, $3300; credit Supplies, $3300