The balance in the supplies account before adjustment at the end of the year is $868. The proper adjusting entry if the amount of supplies on hand at the end of the year is $263 would be:

The adjusting entry would be:

Dr Supplies Expense or COGS $605

Cr                 Supplies or inventory account $605

Explanation:

The reason is that the inventory in hand is $263 whereas in the account is $868 which means the inventory must be reduced to $263 because the entry is wrongly passed in the system. So what we will do is decrease the inventory account by $605 ($868 - $263). This means entry must reduce inventory which is debit in nature and decrease in inventory must be then credited. The other entry would be a debit to cost of goods sold because the inventory sold must form part of the cost of goods sold so it must be debited.

The entry is:

Dr Supplies Expense or COGS $605

Cr                 Supplies or inventory account $605

Note the supplies expense account or cost of goods sold are terms interchangeably used in accounting.

Likewise supplies account and inventory account are also interchangeable terms.

answerpublish a notice of the proposed rulemaking proceeding in the federal register;

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.