At March 1 2016 Milo Corp. had supplies on hand of $600. During the month Milo purchased supplies of $1300 and used supplies of $1400. The March 31 adjusting journal entry should include a

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The correct adjusting journal entry should reflect the amount of supplies used during the period, which is $1400. This is recorded as a credit to the supplies account to decrease the asset balance, and a corresponding debit to the supplies expense account to recognize the expense.