Question

A company purchased $270,000 in supplies during the year. The supplies account increased by $10,000 during the year to an ending balance of $66,000. For what amount was the adjusting entry to supplies expense? $300,000. $260,000. $280,000. $240,000.

Answer 1

Answer:

$260,000

Explanation:

Ending Balance of Supplies = $66,000

Beginning balance of Supplies = $66,000 - $10,000 = $56,000

Ending Balance of Supplies = Beginning balance of Supplies + Purchases for the period - Expense in the period

$66,000 = $56,00 + $270,00 - Expense in the period

Expense in the period = $260,000

The adjusting entry to supplies expense was $260,000.