Question

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. Supplies Expense 730 Supplies 730 ppppppp?Record purchase of supplies. Adjust supplies inventory to actual. Record sale of supplies. Reduce supplies expense.

Answer 1

Answer:

Adjust supplies inventory to actual.

Explanation:

The adjusting entry to record the adjust supplies inventory to actual is shown below:

Supplies expense $730

         To Supplies $730

(Being the supplies inventory is adjusted)

For recording this we debited the supplies expense as it increased the expenses and credited the supplies as it decreased the assets

Therefore the second option is correct