Shaftebury Ltd. began operations and purchased $15,900 of supplies. By year end, $8,800 of supplies were still on hand. The adjusting entry at year end would include a:

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The adjusting entry at year end for supplies would involve reducing the balance sheet account Supplies by the amount still on hand ($8,800), and recognizing the expense incurred during the year for the amount of supplies used up ($15,900 - $8,800 = $7,100). The expense account being credited would be Supplies Expense and the account being debited would be Supplies Expense for $7,100.