Question

"using accrual-basis" The following events pertain to Jasper Corporation: May 1 Jasper purchased office supplies of $3,000 on account.May 5 The office supplies were shipped to Jasper.May 8 Jasper used these office supplies for a one-time event.May 9 Jasper paid $3,000 cash for the office supplies purchased on May 1.Using accrual-basis accounting, on which date should Jasper record supplies expense?

Answer 1

Answer:

Accrued expenses refer to the costs that are incurred in a period but are both unpaid and are unrecorded. Accrued expenses must be reported on the income statement of the period when incurred.

Explanation:

Accrual Basis of Accounting

Accrued expenses refer to the costs that are incurred in a period but are both unpaid and are unrecorded. Accrued expenses must be reported on the income statement of the period when incurred.

Using accrual-basis accounting, Jasper should  record supplies expense at the end of the accounting period which maybe on 30th June or 31st Dec with an adjusting entry.

On May 8 Jasper would record the Supplies expensed.