If supplies have been used up during the accounting period, the correct adjusting entry would be:
A)increase the asset 'supplies' and increase 'supplies expense.'
B)increase the asset 'supplies' and reduce the 'supplies expense.'
C)reduce the asset 'supplies' and reduce the 'supplies expense.'
D)reduce the asset 'supplies' and increase the 'supplies expense.'

Question

Quizplus · Accepted Answer

When supplies are used up, the asset 'supplies' decreases, and 'supplies expense' increases to reflect the cost of supplies used during the period.

If Supplies Have Been Used Up During the Accounting Period