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Question - At the beginning of January, the first month of the accounting year, the Supplies account had a debit balance of $800. During January, purchases of $200 worth of supplies were added to the Supplies account. At the end of January, $600 of supplies were still available. How should this account be adjusted and what other account is adjusted on January 31 before financial statements are prepared for the current month? What type of account is Supplies? What financial statement will Supplies appear on and what will be the balance on January 31st?
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