Question
On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consumed supplies of $800.
On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consumed supplies of $800. If no adjusting entry is made for supplies
a. stockholer's equity will be overstated by $800.
b. assets will be understated by $350.
- Why the answer is (a)? and why (b) is wrong answer? Please tell me specificly.
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Auditing
Authors: Timothy J. Ph.D. Robertson, Jack C.; Louwers
9th Edition
0072906952, 9780072906950
