Answer:
4. debit supplies expense, $3,500; credit supplies, $3,500.
Explanation:
Assuming there is no opening inventory of supplies. So the purchases mad is the only inventory which is in stock during the Month of June. Stock has been used during the month and at the end of the month it remains only $3,000.
Using following Formula we will calculate the supplies Expense.
Ending Inventory of supplies = Opening Inventory of supplies + Purchases - supplies Expensed in the period
$3,000 = $0+ $6,500 - Supplies Expensed in the period
$3,000 = $6,500 - Supplies Expensed in the period
$6,500 - $3,000 = Supplies Expensed in the period
Supplies Expensed in the period = $3,500
So, the entry will be
Debit supplies expense $3,500
Credit supplies $3,500
