Question

At the beginning of the period, a company reports a balance in office supplies of $500. During the period, the company purchases an additional $3,500 of office supplies for cash. By the end of the period, only $950 of office supplies remains. Record the period-end adjusting entry.

Answer 1

Explanation:

The adjusting entry is as follows:

Supplies expense A/c Dr $370

      To Supplies A/c $370

(Being supplies account is adjusted)

The Supplies expense is calculated below:

= Beginning Supplies balance + purchase an additional office supplies  - supplies on hand

= $500 + $3,500 - $950

= $3,050

Simply we debited the supplies expense account and credited the supplies account for $3,050