If A Company Fails To Make An Adjusting Entry To Record Supplies Expense
W h at h appe ns if a compa ny fails to adjust Supplies Expen se Account for t he period is a nswered in t his post. Actually, whe n supplies used in t he period is not adjusted wit h the supplies o n ha nd, t he n supplies expense is understated and he nce as a result N et Income in Income would b e overstated / increased. Moreover, the supplies o n ha nd, as a Current Asset , will b e overstated o n assets side of b ala nce s heet. The adjusti ng entry to record supplies expense account is s how n b elow: Supplies Expe nse a/c XXX Supplies On Ha nd a/c XXX ...