Question

At the beginning of December, Global Corporation had $1,800 in supplies on hand. During the month, supplies purchased amounted to $2,900, but by the end of the month the supplies balance was only $1,800. What is the appropriate month-end adjusting entry

Answer 1

Answer:

Explanation:

The adjusting entry is shown below:

Supplies expense A/c Dr  $2,900

           To Supplies A/c  $2,900

(Being supplies expense is recorded)

The supplies expense is computed below:

= Supplies opening balance +  purchase made - supplies ending balance

= $1,800 + $2,900 - $1,800

= $2,900

For recording this transaction we debited the supplies expense account and credited the supplies account for $2,900