Is store supplies inventory included in the balance sheet? or income statement?

Question

please help me out

Answer 1

Store supplies inventory is on the balance sheet.

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When purchased, the journal entry is:

Debit 'Store Supplies'

Credit 'Cash'

[ This entry places the supplies on the balance sheet as an asset. ]

As they are used, the journal entries look like:

Debit 'Store Supplies Expense'

Credit 'Store Supplies'

[ This entry reduces the balance of the asset account 'Store Supplies' and increases expenses for the period by the corresponding amount. ]