Question

A company purchased $6,000 worth of supplies in August. On August 31, the balance in the Supplies account was $3,200. The adjusting entry includes
a: Debit to Supplies Expense for $3,200.
b. Credit to Supplies for $2,800.
c. Debit to Supplies for $2,800.
d. Credit to Cash for $2,800.
e. Credit to Supplies Expense for $2,800.

Answer 1

Answer:

The answer is C. Debit to Supplies for $2,800

Explanation:

Supplies of worth $6,000 was purchased in Aug.

And on Aug. 31, $3,200 balance was left.

That means $2,800($6,000 - $3,200) has been used.

The supplies expense account will he debited for $2,800.

Note that expense increases with debit and credit decreases expense.

Option B, D, E are wrong because the expense increases and not decreases.