For each of the following, identify the primary GAAP that has been violated and explain why. 1. Delta Company prepared its first set of financial statements for the three years ended July 31, 2020. 2. Allard Consulting purchased $9,800 of supplies on September 30, 2020, and debited Office Supplies Expense. Allard's year-end is September 30. 3. On May 3, 2020, Nikos Car Wash collected $3,000 in advance from a new limousine company to begin operating June 1, 2020. Nikos credited a revenue account for the $3,000. 4. On November 20, 2020, Scooter Town rented equipment for $1,500. Scooter Town is not recording the transaction until it pays (payment is required 15 days from the rental date). Page 194 Supplies Used Supplies Not Used Page 19 Organic Market, a grocery store, purchased supplies for $12,000 cash on July 1, 2020. As of December 31, 2020, $7,000 had been used and $5,000 of supplies had not been used. Organic Market prepares financial statements on an annual basis and has a December 31 year-end. a. Record the journal entry on July 1, 2020. b. In order to prepare the annual financial statements, record the adjusting journal entry to reflect the amount of supplies used as of December 31, 2020.. c. On January 1, 2021, what amount in supplies does Organic Market have? Answers