At the beginning of the period, the Supplies account has a balance of $700. At the end of the period, the balance in the account was $475. The adjusting entry would be:
A)debit Supplies Expense, $475; credit Supplies, $475.
B)debit Supplies, $475; credit Supplies Expense, $475.
C)debit Supplies Expense, $225; credit Supplies, $225.
D)debit Supplies, $225; credit Supplies Expense, $225.

Question

Quizplus · Accepted Answer

The correct adjusting entry is to debit Supplies Expense for $225 and credit Supplies for $225, reflecting the amount of supplies used during the period ($700 beginning balance - $475 ending balance = $225 used).

At the Beginning of the Period, the Supplies Account Has