A company purchased $6,000 worth of supplies in August and recorded the purchase in the Supplies account. On August 31, the fiscal year-end, the physical count of supplies indicates the cost of unused supplies is $3,200. The adjusting entry would include a $2,800 debit to Supplies.

Question

Quizplus · Accepted Answer

The adjusting entry should include a $2,800 debit to Supplies Expense, not Supplies, to account for the used supplies.

A Company Purchased $6,000 Worth of Supplies in August and Recorded