1. The following are some data from a company’s financial statements: What is this company's ending Retained Earnings ba

[answerhappygod]

1. The following are some data from a company’s financial
statements:
What is this company's ending Retained Earnings balance?
The chief operating officer (COO) of a company has become
concerned that employees are stealing office supplies from the
company. Last year, the COO quietly installed a system that tracks
the authorized use of supplies by employees. According to this
system, the office supplies used last year in authorized activities
were $7,000. The COO plans to compare this $7,000 number to the
Supplies Expense number computed in the usual way, using the
bookkeeping records. If the computed Supplies Expense number is
substantially greater than the $7,000 number obtained from the
COO’s system, then there is evidence that the employees have indeed
been stealing office supplies.
On January 1, the company had office supplies costing $4,600.
During the year, the company bought (and recorded) additional
office supplies costing $8,200. On December 31, a physical count of
office supplies revealed that supplies costing $2,900 remained.
Which debit or credit is correctly included in the adjusting
journal entry necessary on December 31 to record the supplies that
this company used during the year?