Ans: b, LO 4, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None AICPA FC: Measurement152.Which of the statements below is nottrue?
153.Andrew is a barber who does his own accounting for his shop. When he buys supplies heroutinely debits Supplies Expense. Andrew purchased $1,700 of supplies in January andhis inventory at the end of January shows $400 of supplies remaining. What adjustingentry should Andrew make on January 31?
Ans: c, LO 5, BT: AP, Difficulty: Medium, TOT: 4 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measuring, AICPA PC: Problem solvinga154.Alternative adjusting entries do notapply toa.accrued revenues and accrued expenses.b.prepaid expenses.c.unearned revenues.d.prepaid expenses and unearned revenues.Ans: a, LO 5, BT: C, Difficulty: Medium, TOT: 2 min., AACSB: None AICPA FC: Measurementa