Question

The supplies account had a beginning balance of $1,823. Supplies purchased during the period totaled $4,344. At the end of the period before adjustment, $286 of supplies were on hand. Prepare the adjusting entry for supplies. If an amount box does not require an entry, leave it blank.

Answer 1

Answer and Explanation:

The adjusting entry is as follows:

Supplies expense ($1,823 + $4,344 - $286) $5,881

   To supplies payable $5,881

(being the supplies expense is recorded)

Here the supplies expense is debited as it increased the expense and supply payable is credited as it also increased the liabilities