During 20X0, your company purchases $2,000 of supplies and books the amount as an asset....
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Accounting
During 20X0, your company purchases $2,000 of supplies and books the amount as an asset. As you prepare the trial balance on December 31, you see that there is no 20X0 supplies expense. A quick physical count reveals $700 of supplies on hand.
What is the correcting journal entry?
If no correcting journal entry is recorded, how are the 20X0 income statement and balance sheet, respectively, affected?
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