Office Supplies Somerville Corp. purchases office supplies once a month and prepares monthly… 1 answer below »

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Office Supplies

Somerville Corp. purchases office supplies once a month and prepares monthly financial statements.

The asset account Office Supplies on Hand has a balance of $1,450 on May 1. Purchases of

supplies during May amount to $1,100. Supplies on hand at May 31 amount to $920. Prepare the

necessary adjusting entry on Somerville’s books on May 31. What will be the effect on net income

for May if this entry is not recorded?