If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

A. Decreases the balance of contra asset account
B. Decreases the balance of an expense account
C. Increases the balance of an asset account




If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?


A. Decreases the balance of an asset account
B. Increases the balance of a contract asset account
C. Increases the balance of an expense account



The net income reported on the income statement is $50,000.
However, adjusting entries have not been made at the end of the period for supplies expense of $500 and accrued salaries of $1,300.
Net income, as corrected, is:

A. $50,500
B. $51,800
C. $48,200