The beginning balance in the Supplies account was $3 000. Purchases of supplies during the year were $25 000. The business makes adjusting entries for supplies once a year. A count of supplies at year- end revealed that the ending balance in the Supplies account should be $1 500. What is the amount of the adjusting entry?
A)$25 000
B)$26 500
C)$3 000
D)$1 500

Question

Quizplus · Accepted Answer

The adjusting entry is calculated by taking the beginning balance ($3,000) plus purchases ($25,000) minus the ending balance ($1,500), which equals $26,500.

The Beginning Balance in the Supplies Account Was $3 000