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.

Question

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The Answer of 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.

Indicate (A) the Type of Adjustment (Prepaid Expense Unearned Revenue