At the end of the accounting period, the following should occur with supplies
A)No action is required
B)An adjusting entry should be made to expense the used supplies at the end of the period
C)A physical inventory should be taken
D)Both b and c

Question

Quizplus · Accepted Answer

Supplies are considered as assets until they are used, so no action is required at the end of the accounting period. However, an adjusting entry should be made to expense the supplies that are used and a physical inventory should be taken to determine the value of the remaining supplies at the end of the period. Therefore, both option B and C are correct.

At the End of the Accounting Period, the Following Should