Essay
Indicate (a) the type of adjustment (prepaid expense unearned revenue accrued revenue or accrued expense) and (b) the accounts before adjustment (overstated or understated) for each of the following:
1. Supplies of $400 have been used.
2. Salaries of $300 are unpaid.
3. Rent received in advance totaling $500 has been earned.
4. Services provided but not recorded total $700.
Correct Answer:

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