Question

Supplies at the beginning of the year totaled $2,000. During 2021, additional supplies of $18,000 were purchased, and the entire amount was debited to Supplies. Supplies remaining at the end of the year total $4,000. Record the adjusting entry for supplies at its year-end of December 31.

Answer 1

Answer:

supplies expense    16,000 debit

             supplies                     16,000 credit

Explanation:

beginning supplies

+ purchase of supplies

available for use

-ending supplies (supplies at hand)

used supplied

2,000 + 18,000 = 20,000

ending supplies:    4,000

supplies expense 16,000

we will decrease the supplies account and declare the expense.