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Question - Rosario works for a small medical practice. Only three employees work in the office, so Rosario is often asked to take on additional tasks when other employees are sick or on vacation. Debbie, Rosario's coworker, counted a total of $8,000 in medical supplies in the March 1 inventory count. On March 31, Rosario filled-in for Debbie and counted $3,000 of medical supplies. During the month of March, records show supplies received of $10,000 and supplies provided to patients of $2,000. Rosario feels concerned that some supplies are missing.
Required -
1. Describe or show the calculation of the dollar amount of supplies the office should have at the end of the month (March 31).
2. Explain the adjusting journal entry the Healthcare practice should make to correct the change in supplies.
3. Describe one approach Rosario should take to address the office supply issue.
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