A company starred the year with $1,500 of supplies on hand. During the year the

Question

A company starred the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. At the end of the year the company determined that only $300 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period? Debit Supplies Expense and credit Supplies for $2,000 Debit Supplies and credit Supplies Expense for $300 Debit Supplies Expense and credit Supplies for $1,200 Debit Supplies and credit Supplies Expense for $1,000

Explanation / Answer

Supplies Expenses at the end of the period= Beginning+Purchases-Closing supplies=$1500+$800-$300= $2000

Debit supplies expenses and credit supplies for $2000

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