Question

$1,000 of supplies were purchased at the beginning of the month. $300 were used during the month. (The Supplies account was increased at the time of the initial purchase.) Demonstrate the required adjusting journal entry by selecting from the choices below. (Check all that apply.)

Answer 1

Answer:

Explanation:

Given that

Beginning of month supplies purchased for $1,000

And, the supplies used = $300

So, The adjusting entry is as follows

1. Supplies expense A/c Dr $700

               To supplies A/c $700

(Being supplies expense is recorded)

The supplies expense is computed by

= Supplies balance - supplies used

= $1,000 - $300

= $700