Adjustment for Supplies The downtown location of Chicago Clothiers purchases large quantities of supplies, including plastic garment bags and paper bags and boxes. At December 31, the following information is available concerning these supplies: Supplies inventory, January 1 $4,150 Supplies inventory, December 31 5,220 Supplies purchased for cash during the year 12,690 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 317 If an amount box does not require an entry, leave it blank. Dec. 31 88 3. By how much would assets and income be overstated or understated if the adjusting entry were not recorded? by Assets S Net Income and stockholders' equity by