A total of $3,200 in supplies was purchased during the year.At the end of the year $700 of the supplies were left.The adjusting entry needed at the end of the year is:
A) debit Supplies $2,500;credit Supplies Expense $2,500
B) debit Supplies Expense $3,200;credit Supplies $3,200
C) debit Supplies Expense $700;credit Supplies $700
D) debit Supplies Expense $2,500;credit Supplies $2,500

Question

Quizplus · Accepted Answer

The supplies used during the year is $3,200 - $700 = $2,500. The adjusting entry should reflect the expense incurred, so Supplies Expense is debited and Supplies is credited for $2,500.

A Total of $3,200 in Supplies Was Purchased During the Year.At