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

Question

Quizplus · Accepted Answer

If supplies have been used up during the accounting period, it means the supplies asset would have been reduced. However, we also need to increase the supplies expense to recognize the cost of supplies used during the period. Therefore, the adjusting entry would be to reduce the asset 'supplies' and increase the 'supplies expense'. This is represented by choice B.

If Supplies Have Been Used Up During the Accounting Period,the