Question

The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,000 on hand. Which of the following is an adjusting entry on June 30 is _______.
a) debit supplies expense, $1,000; credit supplies, $1,000.
b) debit supplies, $5,500; credit supplies expense, $5,500.
c) debit supplies, $1,000; credit supplies expense, $1,000.
d) debit supplies expense, $5,500; credit supplies, $5,500.

Answer 1

The answer should be d