TranscribedText: Question No. 2: Illustration - Prepayment of Supplies On December 31, 2021, the maintenance supplies inventory account of DEF Company showed an ending balance of $4,200. During 2022, DEF purchased $9,000 of supplies. A count of the supplies on hand at December 31, 2022 showed unused supplies in the amount of $3,600. DEF Company has a December 31 year-end. Required: Give the adjusting entry that should be made on December 31, 2022 under the following two cases: (Hint: Use T-accounts Case A: The $9,000 paid was debited to the maintenance supplies account revenue. Case B: The $9,000 paid was debited to maintenance supplies expense.Question No. 2 - Case A: Supplies OB 4,200 9,600 (used) (purchased) 9,000 (per count) CB 3,600 Cash 9,000 Supplies Expense (used) 9,600 9,600 Question No. 2 - Case B: Supplies OB 4,200 600 (used) CB 3,600 Cash 9,000 Supplies Expense (purchased/used) 9,000 (used) 600 9,600

On December 31, 2021, the maintenance supplies inventory account of DEF Company showed an ending balance of $4,200. During 2022, DEF purchased $9,000 of supplies. A count of the supplies on hand at December 31, 2022 showed unused supplies in the amount of $3,600. DEF Company has a December 31 year-end. Required: Give the adjusting entry that should be made on December 31, 2022 under the following two cases: (Hint: Use T-accounts Case A: Case B: The $9,000 paid was debited to the maintenance supplies account revenue. The $9,000 paid was debited to maintenance supplies expense.