Question

When a company makes an end-of-year adjusting entry which includes a debit to Supplies Expense to account for supplies used during the period, which account is credited?

Answer 1

Answer:

When a company makes an end-of-year adjusting entry which includes a debit to Supplies Expense to account for supplies used during the period, which account is credited? The answer would be deferred asset amortization adjustment

Explanation:

The first step to take when completing the accounting procedures at the end of the year for a small business is to account for any necessary financial adjustments. Throughout the year, revenues are collected and expenses are deducted. However, the amount of certain financial transactions may differ from the moment they were made. Adjustments also have to be made for paid accounts. If the interest has been paid in monies held in a corporate savings account, it must be added to the ledger. Alternatively, if interest has been charged on credit card purchases, these transactions also have to be entered in the spreadsheet.

Deferred asset depreciation is not subject to the useful life of the concept, but will generally be amortized as assets are consumed or spent, then the depreciation can be done a few months or in several years, depending on the reality of each company and of each cost or expense.

However, as regards deferred charges, the standard has considered some guidelines to consider when paying off