The Sheridan Company purchased $7140 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1260 on hand. The adjusting entry that should be made by the company on June 30 is:

Debit  Supplies expense    $5,880

Credit  Supplies account     $5,880

Being entries to record the amount of supplies used between 2 June and 30 June.

Explanation:

The purchase of laundry supplies yet to be used is a transaction that gives rise to an asset (inventory). The purchase is  recorded as a debit to supplies and a credit to either cash or accounts payable.

When the supplies are used, the entries required to recognize the use are debit supplies expenses and credit supplies account (earlier debited at purchase)

If the  purchase on 2 June is $7140, and on 30 June amount left is $1260

Amount of supplies used = $7140 - $1260

= $5880

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know