The Policy At Adler Corporation Is To Expense All Office Supplies At The Time Of Purchase. On The Last Day Of The Accounting Period, There Are $1,100 Of Unused Office Supplies On Hand And The Balance Of Supplies Expense Is $3,500. What Should The Accountant Do? | Which Of The Following Items Does Not Result In An Adjustment In The Merchandise Inventory Account Under A Perpetual System?
1. The correct choice of this multiple choice question is (A), as the portion of office supplies account amounting to $1,100 is still unused or unconsumed, which represents office supplies on hand i.e., a current asset, as it is still not charged to expense on the last day of the accounting period, so we transferred the portion of office supplies expense account to office supplies account. So, we debit supplies account and credit supplies expense account with the amount of $1,100. The other options of this mcq are not correct choices here. 2. The correct option is C, as the payment of freight made after the goods sold to customers i.e., the customers purchased the goods from the company and the company delivered the goods to his place as the company offers free delivery to its customers so the delivery expense / shipping charges is paid by the company. So, freight outward (carriage outward / transportation outward) is treated as a selling & distribution expense under opera...