A company started the year with $300 of supplies. During the year, the company purchased an additional $1200 of supplies. There were $500 of supplies on hand at the end of the year. An adjusting entry prepared at the end of the accounting period includes a:

Question

Quizplus · Accepted Answer

The supplies used during the year is $1000 ($300 beginning + $1200 purchased - $500 ending), so Supplies Expense is debited for $1000.

A Company Started the Year with $300 of Supplies