Question

Henna Hair Salon purchased supplies for $6,000 and debited Supplies for the full amount. At the end of the accounting period, $1,800 worth of supplies were still on hand. Identify the adjusting entry needed at the end of the period. debit Supplies $4,200; credit Supplies Expense $4,200 debit Supplies Expense $7,800; credit Supplies $7,800 debit Supplies $1,800; credit Supplies Expense $1,800 debit Supplies Expense $4,200; credit Supplies $4,200

Answer 1

Answer: D. debit Supplies Expense $4,200; credit Supplies $4,200

Explanation:

Based on the information given in the question, the adjusting entry needed at the end of the period will be to debit Supplies Expense $4,200 and credit Supplies $4,200.

The supplies expenses of $4200 was gotten as:

= $6000 - $1200

= $4800

Therefore, the correct option is D.

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