U N ew Appico book Calculator Office Supplies Beesley Company purchases office supplies once a month and prepares monthly financial supplies during May amount to $1,100. Supplies on hand at May 31 amount to $920 Required: 1. Identity and analyze the effect of the adjustment on May 31. Accounts Statement Office Supplies en Hand Decrease, Office Supplies Expense Increase Balance sheet and Income Statement o n to try financial statement is givel, a decrease be sure to enter the answer with more comment com se stane mees Save the Income Statement Liabile o Office Supplies Expense ... Expense Increase e the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the answer Income Statement Net Stockholders' Equity ilities Revenues Expenses Income No Entry Office Supplies Expense it is not recorded? Balance Sheet Income St Stockholders Assets Liabilities Equity Revenues Office Supplies on Hand No Entry No Entry Omice Supplies Check My Work Partially correct 2. What will be the effect on net income for May if this adjustment is not recorded? Net Income for the month of May would be overstated by if this adjustment were not recognized because expenses would be understated