The balance in the supplies account before adjustment at the end of the year is $6,250. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be
A) debit Supplies, $1,500; credit Supplies Expense, $1,500
B) debit Supplies Expense, $4,750; credit Supplies, $4,750
C) debit Supplies Expense, $1,500; credit Supplies, $1,500
D) debit Supplies, $4,750; credit Supplies Expense, $4,750

Question

Quizplus · Accepted Answer

The correct adjusting entry is to debit Supplies Expense for the amount of supplies used ($6,250 - $1,500 = $4,750) and credit Supplies for the same amount, reflecting the decrease in supplies inventory.

The Balance in the Supplies Account Before Adjustment at the End