The entry to adjust for the cost of supplies used during the accounting period is
A) debit Supplies Expense; credit Supplies
B) debit Owner's Equity; credit Supplies
C) debit Accounts Payable; credit Supplies
D) debit Supplies; credit Owner's Equity

Question

Quizplus · Accepted Answer

The cost of supplies used during the accounting period should be recognized as an expense on the income statement. Therefore, Supplies Expense should be debited. The supplies themselves should be credited to reduce the asset on the balance sheet. The correct journal entry is: debit Supplies Expense; credit Supplies.

The Entry to Adjust for the Cost of Supplies Used