Question

Ignatenko Company purchased office supplies costing $5,000 and increased Supplies for the full amount. Supplies on hand at the end of the accounting period were $1,300. The appropriate adjustment at the end of the period is _________.a. Supplies Expense $3,700Supplies $3,700 b. Supplies Expense $1,300 Supplies $1,300 c. Supplies $1,300 Supplies Expense $4,000 d. Supplies $3,700Supplies Expense $3,700

Answer 1

Answer:

a. Supplies Expense $3,700Supplies $3,700

Explanation:

The entries required when supplies are purchased is

Debit Supplies account

Credit cash/accounts payable

At the point of use of these supplies, the entries required are

Debit  Supplies expense account

Credit supplies account

Hence the supplies used

= $5,000 - $1,300

= $3,700

Entries to be posted to adjust

Debit  Supplies expense account  $3,700

Credit supplies account      $3,700