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as always when we have a question weamp;#39;re gonna start by reading the whole question pink ink is a wholesaler who sells products to retailers the following transactions occurred during 2020 provide the original entry also called the transactional entry which is an exchange between two parties as well as the adjusting entry for each scenario the company has a December 31st year end they record adjusting entries annually using the balance sheet method so this is exactly what I demonstrated to you when we did the flow chart alright letamp;#39;s go back to the question at the start of the year the business has office supplies of $1,200 on July 18th they purchased 1,500 dollars of additional supplies on account at December 31st account of the supplies indicates that there are only $600 of supplies remaining so Iamp;#39;m gonna move down so that I can start working on this to do my calculations I prefer to work in T accounts so thatamp;#39;s what Iamp;#39;m gonna do I know supplies
