Supplies on hand were $800 at the start of the year. At the end of the year, it was determined that $450 of supplies had been used. What is the adjusting entry for supplies?
A)debit Supplies, $450; credit Supplies Expense, $450
B)debit Supplies, $350; credit Supplies Expense, $350
C)debit Supplies Expense, $450; credit Supplies, $450
D)debit Supplies Expense, $350; credit Supplies, $350

Question

Quizplus · Accepted Answer

Since $450 of supplies have been used, this amount needs to be expensed out. Therefore, the Supplies Expense account needs to be debited and Supplies account needs to be credited.

Supplies on Hand Were $800 at the Start of the Year