Question

Bramble Company purchased supplies costing $7160 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $2030 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:

Answer 1

Explanation:

The adjusting entry is shown below:

Supplies expense A/c Dr  $5,130

       To Supplies A/c $5,130

(Being supplies account is adjusted)  

The supplies expense is computed below

= Purchase of supplied made - supplies still on hand  

= $7,160 - $2,030

= $5,130

We simply debited the supplies expense account and credited the supplies account