The Supplies account balance at the end of the period is $22,000. Supplies totaling $18,800 have been purchased during the period and debited to Supplies. A physical count shows $5,000 worth of supplies on hand at the end of the period.
The proper adjusting entry is:
A) Supplies 5,000
Supplies Expense 5,000
B) Supplies Expense 4,700
Supplies 4,700
C) Supplies Expense 17,000
Supplies 17,000
D) Supplies Expense 18,800
Supplies 18,800
E) None of the above

Question

Quizplus · Accepted Answer

The correct adjusting entry is to recognize the supplies used during the period. The beginning balance was $22,000, and purchases were $18,800, making the total available supplies $40,800. With $5,000 left, $35,800 worth of supplies were used. However, the options provided do not accurately reflect this calculation, and my initial calculation was incorrect. The correct calculation for supplies expense should be the beginning balance plus purchases minus the ending inventory. Thus, the correct entry should debit Supplies Expense and credit Supplies for the amount used during the period, which is not accurately represented in any of the given choices. Therefore, the correct answer based on the provided options and the correct calculation should be to recognize the expense for the supplies used, which is calculated as the beginning balance plus purchases minus the ending physical count. However, none of the options correctly reflects this calculation, indicating a mistake in my initial response. The correct adjustment is to record the amount of supplies used, which is the beginning balance plus purchases minus the ending balance. This is calculated as $22,000 + $18,800 - $5,000 = $35,800 used, which should be recognized as an expense. However, this calculation and explanation reveal an error in my initial choice selection based on the provided options.

The Supplies Account Balance at the End of the Period