During the month,a company uses up $4,000 of supplies.At the end of the month,the related adjusting journal entry would result in:

Question

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When supplies are used up, it results in a decrease in the asset "Supplies" since there are now fewer supplies available. At the same time, an equal increase in expenses should be recorded to reflect the reduction in the company's resources. Therefore, the adjusting entry would be to debit Supplies Expense and credit Supplies for $4,000.

During the Month,a Company Uses Up $4,000 of Supplies